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

question 128

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.
-The net change in Scott's owner's equity for the year is a:

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

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Definitions:

Major

Often refers to the main or predominant component, phase, or aspect in a mixture, compound, or scenario.

Reaction

A reaction is a process in which one or more substances, the reactants, are converted to one or more different substances, the products.

Complex Metal Hydrides

A class of compounds formed by the combination of a metal with hydrogen, typically used as hydrogen storage materials.

Ketones

Organic compounds characterized by the presence of a carbonyl group bonded to two carbon atoms.