Use the Following Information to Answer Questions

question 8

Multiple Choice

Use the following information to answer questions
Lexington Company engaged in the following transactions during 2015,its first year in operation: (Assume all transactions are cash transactions)
1.Acquired $6,000 cash from issuing common stock.
2.Borrowed $4,400 from a bank.
3.Earned $6,200 of revenues.
4.Incurred $4,800 in expenses.
5.Paid dividends of $800.
Lexington Company engaged in the following transactions during 2016:
1.Acquired an additional $1,000 cash from the issue of common stock.
2.Repaid $2,600 of its debt to the bank.
3.Earned revenues,$9,000.
4.Incurred expenses of $5,500.
5.Paid dividends of $1,280.
-The amount of liabilities on Lexington's 2016 balance sheet was

• A)$1,000.
• B)$1,800.
• C)($2,600).
• D)$480.

---

Definitions:

Aggregate Demand

The total demand for all goods and services within a particular market or economy at various price levels, during a specified time period.

Price Level

A measure of the average prices of goods and services in an economy at a specific time, indicating the cost of living.

Economic Circumstances

The current state of the economy, which can affect financial markets, consumer behavior, and business operations.

Foreign Exchange Market

A marketplace where currencies are traded internationally, allowing businesses and countries to convert currency for international trade and finance.