Vista Camera Services Started the Year with Total Assets of $80,000

question 8

Multiple Choice

Vista Camera Services started the year with total assets of $80,000 and total liabilities of $40,000.The revenues and the expenses for the year amounted to $120,000 and $70,000,respectively.During the year,the company did not issue any common stock,but it distributed dividends of $60,000.
-Calculate Vista's net income for the year.

• A)$50,000
• B)$120,000
• C)$70,000
• D)$80,000

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Definitions:

Creditors

Individuals or entities to whom money is owed by a debtor.

Unsecured Creditors

Unsecured Creditors are individuals or entities that have loaned money without taking collateral and thus stand last in line to be paid if the debtor defaults or files for bankruptcy.

Domestic-support Obligations

Financial commitments, such as alimony or child support, owed to a spouse, ex-spouse, or child usually as determined by court order.

Taxes

Mandatory financial contributions levied by governments on individuals and businesses to fund public expenditures.