Beginning Owner's Capital Was $25,000

question 129

Multiple Choice

Beginning owner's capital was $25,000.Ending owner's capital is $37,000.No contributions were made during the year.Drawings were $23,000.What was net income or loss for the year?

• A) Net income of $16,000
• B) Net loss of $35,000
• C) Net loss of $14,000
• D) Net income of $35,000

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Definitions:

Hourly Rate

The amount of money paid for each hour of work performed, typically used as a measure of compensation for part-time or contract employees.

FICA Taxes

Taxes collected in the United States to fund Social Security and Medicare, typically deducted from employees' paychecks.

Taxable Income

The portion of an individual's or corporation's income used as the basis for calculating how much tax is owed.

Social Security Tax

A tax that finances the Social Security program, providing benefits for retirees, the disabled, and survivors of deceased workers.