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

question 179

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 owner's total investment for this first month was $5,000. There were no owner withdrawals in the first month.
Calculate the ending balance in the Owner's Capital account to be reported on the Statement of Owner's Equity.

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

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Definitions:

Context Effects

The impact of environmental factors on one's perception, cognition, and behavior, demonstrating how context can shape and influence our decisions and judgments.

Prosopagnosia

Prosopagnosia, also known as face blindness, is a neurological disorder characterized by the inability to recognize faces, while other aspects of visual processing and intellectual functioning remain intact.

Top-down Processing

A cognitive process that initiates with our thoughts, which flow down to lower-level functions, such as the senses.

Prosopagnosia

Known as face blindness, this is a disorder in the neurological system that hampers facial recognition abilities.