The Total Assets and the Total Liabilities of Paragon Services

question 140

Multiple Choice

The total assets and the total liabilities of Paragon Services are shown below.During the year,no additional capital contributions were made,and the business earned net income of $50,000. $\begin{array}{|l|r|r|} \hline& \text { Assets } & \text { Liabilities } \\\hline \text { Beginning of year } & \$ 395,000 & \$ 290,000 \\\hline \text { End of year } & 455,000 & 320,000\\\hline\end{array}$ What was the amount of drawings taken during the year?

• A) $85,000
• B) $40,000
• C) $45,000
• D) $20,000

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Definitions:

Physical Component

Aspects of something that are tangible or involve physical attributes or manifestations.

Attitudinal

Pertaining to attitudes, which are psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.

Schachter and Singer

Two psychologists known for their 1962 experiment and theory suggesting that emotions are determined by physiological arousal and cognitive labels.

General Feeling

A broad emotional state or mood that is not focused on any specific object or situation.