Moretown Company Had the Following Transactions in 2015, Its First

question 121

Multiple Choice

Moretown Company had the following transactions in 2015, its first year of operations. • Issued 30,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $18.00 per share.
• Earned net income of $70,000.
• Paid no dividends.
At the end of 2015, what is the total amount of stockholders' equity?

• A)$30,000
• B)$610,000
• C)$540,000
• D)$70,000

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Definitions:

Perceptions

The process by which individuals organize and interpret their sensory inputs to give meaning to their environment.

Cultural Background

The cultural, social, and educational environment a person was raised in or identifies with.

Fundamental Attribution Error

is a cognitive bias where an individual underestimates situational factors and overestimates personal characteristics when explaining others' behaviors.

Internal Factors

Elements within an organization or individual that affect performance, decisions, and outcomes.