A Certain Company Began the Year with Total Assets of $10,000,000

question 230

Essay

A certain company began the year with total assets of $10,000,000 and total liabilities of $6,200,000.No additional shares were issued during the year.Use the accounting equation to answer the following questions.
A) What was the amount of total assets at the end of the year if liablities decreased by $\$ 600,000$ and shareholders' equity increased by $\$ 900,000$ ?

B) Was the company profitable? Explain your answer.

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Definitions:

Dreams

Dreams are sequences of images, ideas, emotions, and sensations that occur involuntarily in the mind during certain stages of sleep.

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it, also known as the "I-knew-it-all-along" effect.

Retroactive Interference

The phenomenon where newly learned information interferes with the recall of previously learned information.

Just World Hypothesis

The belief that the world is fundamentally fair, leading individuals to rationalize an unjust situation as having been deserved by the victim.