Scott's Camera Shop Started the Year with Total Assets of $90,000

question 5

Multiple Choice

Scott's Camera Shop started the year with total assets of $90,000 and total liabilities of $60,000.During the year,the business earned revenues of $150,000 and incurred expenses of $60,000.Scott made no additional capital contributions during the year,but did make drawings of $70,000.What is the amount of owners' equity at the end of the year?

• A)$150,000
• B)$70,000
• C)$50,000
• D)$60,000

---

Definitions:

Pre-bonus Income

The total revenue or profit earned by an individual or entity before any bonuses are issued or calculated.

Partnership Income

The earnings distributed to partners of a partnership based on the terms of the partnership agreement.

Equal Division

The process of dividing something into parts or portions that are as nearly equal as possible.

LLP

Limited Liability Partnership, a partnership in which some or all partners have limited liabilities, protecting personal assets from debts and liabilities of the partnership.