Sharon Samson Starts a Plumbing Service Called Reliable Waterworks

question 123

Multiple Choice

Sharon Samson starts a plumbing service called Reliable Waterworks. Transactions of Reliable Waterworks during the first year of operations are given below:
A. Sharon deposited $14,000 into a new checking account for the business and recorded the capital contribution.
B. Paid $2,000 cash for equipment to be used for plumbing repairs.
C. Borrowed $15,000 from a local bank and deposited the money in the checking account.
D. Paid $600 rent for the year.
E. Purchased $900 of office supplies by cash.
F. Completed a plumbing repair project for a local lawyer and received $3,500 cash.
Calculate the amount of total liabilities at the end of the first year.

• A) $15,000
• B) $14,000
• C) $27,000
• D) $3,500

Grasp the principles of continuous improvement, specifically Kaizen, in the context of manufacturing and management.

Comprehend how operational execution influences a company's success.

Recognize the relationship between marketing efforts and sales revenue.

Identify the critical role of strategic practices such as strategy, structure, culture, and execution in business success.

---

Definitions:

Salvage Value

Salvage value is the estimated residual value of an asset after it has reached the end of its useful life and is no longer useful for its original purpose.

Payback Period

The period of time needed to recover the initial cost of an investment.

Simple Rate

A basic or straightforward percentage or interest rate, not compounded or adjusted.

Purchasing

The process of acquiring goods or services to accomplish the goals of an organization, often involving activities such as selection, negotiation, and order placement.