The Total Assets and the Total Liabilities of Paragon Services

question 5

Multiple Choice

The total assets and the total liabilities of Paragon Services are shown below. During the year, no additional capital contributions were made, and the business earned net income of $50,000. What was the amount of drawings taken during the year?

• A)$85,000
• B)$40,000
• C)$45,000
• D)$20,000

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Definitions:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through when exposed to prolonged stress, described by Hans Selye.

Alarm Phase

The initial reaction of the body's stress response, involving the activation of the sympathetic nervous system.

Chronic Stress

is a condition of continued and persistent stress over an extended period, which can have detrimental effects on one's health and well-being.

Psychoneuroimmunologists

Scientists who study the interactions between the nervous system, psychology, and the immune system, particularly how stress and behavior impact health.