Scott's Camera Shop Started the Year with Total Assets of $80,000

question 128

Multiple Choice

Scott's Camera Shop started the year with total assets of $80,000 and total liabilities of $40,000.During the year,the business earned revenues of $120,000 and incurred expenses of $70,000.Scott made no capital contributions during the year,but did make withdrawals of $60,000.
-The net change in Scott's owner's equity for the year is a:

• A) $10,000 decrease.
• B) $40,000 increase.
• C) $30,000 decrease.
• D) $50,000 increase.

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Definitions:

Soybean Oil

A vegetable oil extracted from the seeds of the soybean, commonly used in cooking and in the production of processed foods.

Margarine

A processed food product made primarily from vegetable oils, used as a butter substitute.

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The cost at which gasoline is sold, determined by various factors including crude oil prices, taxes, demand, and supply conditions.

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A fundamental concept in economics that describes consumers' willingness and ability to purchase goods or services at various prices.