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

question 16

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.
-What is the amount of stockholders' equity at the end of the year?

• A)$70,000
• B)$120,000
• C)$30,000
• D)$60,000

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Definitions:

Unauthorized Manner

Refers to actions or operations carried out without official permission or approval.

HDC

Holder in Due Course, a term in commercial law referring to a person who has acquired a negotiable instrument in good faith and for consideration, and thus has certain rights above the original parties.

FTC Rule 433

Known as the Holder in Due Course Rule, it protects consumers by allowing them to make claims directly against creditors in certain credit transactions.

HDC Doctrine

Refers to the Holder in Due Course doctrine, which provides protections to purchasers of negotiable instruments who take them in good faith, for value, and without notice of certain defects.