Use the Information Given Below to Answer the Following Questions

question 29

Multiple Choice

Use the information given below to answer the following questions:
During 2012, Bull Ltd earned revenues of $500 and incurred expenses of $650. Retained profits at 1 January 2012 were $400, and at 31 December 2012 they were $225. At 31 December 2012, assets totalled $1125 and share capital $300. There were no transfers to reserves during 2012.
-What was the net profit or loss of Bull Ltd for the year?

• A) net profit $150
• B) net profit $500
• C) net loss $150
• D) net loss $500.

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Definitions:

Inventory

Goods and materials held by a company for the ultimate goal of resale or production, including raw materials, work-in-progress, and finished goods.

Bank Credit Cards

Financial instruments issued by banks allowing cardholders to borrow funds up to a pre-approved limit for purchases or cash advances.

Credit Card Expense

Costs incurred from using a credit card, including interest charges, annual fees, and transaction fees.

Sales

The total amount earned from selling goods or services before any costs or expenses are deducted.