Net Income Is $29,000

question 146

Multiple Choice

Net income is $29,000.Beginning capital balance was $34,000.Ending capital balance was $55,000.No capital contributions were made by the owner during the year.What amount of drawings was made?

• A) $18,000
• B) $8,000
• C) $5,000
• D) $60,000

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Definitions:

Multiply

The arithmetic operation of scaling one number by another, equivalent to adding a number to itself multiple times.

Simplify

The process of reducing a mathematical expression or equation to its simplest form.

Compounded Annually

Refers to the process of calculating and adding interest to the principal sum of an investment or loan once every year.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.