At the End of Its First Month of Operations,Michael's Consulting

question 81

Multiple Choice

At the end of its first month of operations,Michael's Consulting Services reported net income of $25,000.They also had account balances of: Cash,$18,000; Office Supplies,$2,000 and Accounts Receivable $10,000.The sole stockholder's total investment in exchange for common stock for this first month was $5,000.There were no dividends in the first month. Calculate the amount of total equity to be reported on the balance sheet at the end of the month.

• A)$30,000
• B)$25,000
• C)$20,000
• D)$5,000
• E)$7,000

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Definitions:

Stream

A body of water flowing in a channel or bed, usually freshwater and moving towards a river, lake, sea, or another stream.

Sediment Size

A classification measure of solid particles in sediments or sedimentary rocks, based on their diameter, ranging from clay to boulders.

Mountain Streams

Fast-flowing bodies of water that originate in mountainous regions, often contributing to the erosion and shaping of the landscape.

Stream Velocities

Stream velocities refer to the speed at which water flows in a stream or river, influenced by gradient, channel geometry, and volume of flow.