Scott's Camera Shop Started the Year with Total Assets of $80,000

question 80

Multiple Choice

Scott's Camera Shop started the year with total assets of $80,000 and total liabilities of $40,000.During the year,the business earned revenues of $120,000 and incurred expenses of $70,000.Scott made no capital contributions during the year,but did make withdrawals of $60,000. What is the amount of Scott's owner's equity at the end of the year?

• A) $40,000
• B) $50,000
• C) $30,000
• D) $10,000

Understand the significance of management authority and responsibility in cost control.

Recognize the benefits and risks associated with self-managed teams in the organizational context.

Understand the structure and utility of business unit profit and loss statements for organizational performance evaluation.

Evaluate key financial and non-financial performance measures for various centers (cost, profit, investment, and revenue centers).

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Definitions:

Load Factor

In transportation and logistics, it is the ratio of actual cargo carried to the total carrying capacity available, indicating efficiency in space usage.

Operating Expense

Costs associated with the day-to-day functioning of a business, excluding direct production costs.

Yield

The income generated from an investment, usually expressed as a percentage of the investment's cost or current market value.

Profit

The financial gain achieved when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain those activities.