Vista Camera Services Started the Year with Total Assets of $100,000

question 24

Multiple Choice

Vista Camera Services started the year with total assets of $100,000 and total liabilities of $50,000.The revenues and the expenses for the year amounted to $200,000 and $60,000,respectively.During the year,the company did not issue any common stock,but it distributed dividends of $75,000.Calculate the amount of increase or decrease in stockholders' equity for the year.

• A)a $65,000 increase
• B)a $115,000 increase
• C)a $50,000 decrease
• D)a $75,000 increase

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Definitions:

Goodwill

An intangible asset that represents the value of a company's brand name, customer relationships, and other non-physical assets that contribute to earnings.

Patent

A legal right granted to an inventor or assignee to exclude others from making, using, or selling an invention for a certain number of years.

Copyright

A legal right granted to an author, composer, playwright, publisher, or distributor to exclusive publication, production, sale, or distribution of their original work.

Trademark

A recognizable symbol, design, or expression that uniquely identifies and legally protects the brand or product of a particular source from being used by others.