The Net Income of Edwards Inc

question 112

Multiple Choice

The net income of Edwards Inc. amounted to $74,000 for this year. The beginning balance of Owner's Capital account was $32,000 and the ending balance was $75,000. No additional contributions to capital were made during the year. What was the amount of his withdrawals during the year?

• A)$75,000
• B)$31,000
• C)$149,000
• D)$32,000

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Definitions:

Perfect Tender Rule

A principle in sales law allowing buyers to reject goods if they do not exactly meet the terms of the contract.

Nonconforming Goods

Goods that fail to meet the specifications, quality, or quantity as outlined in a contract.

Installment Contract

A contract that allows for payment or delivery of goods in portions at specified intervals over a period rather than in a single lump sum.

Apportioned

Divided and distributed in proportions or specific amounts according to a defined scheme or calculation.