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

question 115

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 net income for the year?

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

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Definitions:

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services at all levels within a society.

CD Players

Electronic devices that play audio CDs using laser technology, now largely supplanted by digital music formats.

Excise Taxes

Excise taxes are taxes paid when purchases are made on a specific good, such as fuel, tobacco, and alcohol, often included in the price of the product.

Alcohol

A chemical compound commonly found in beverages such as beer, wine, and spirits, consumed for its psychoactive effects of relaxation and euphoria.