Doc's Ribhouse Had Beginning Equity of $52,000; Net Income of $35,000

question 237

Multiple Choice

Doc's Ribhouse had beginning equity of $52,000; net income of $35,000, and withdrawals by the owner of $12,000. The owner made no investments during the year. Calculate the ending equity.

• A) $29,000.
• B) $(5,000).
• C) $75,000.
• D) $5,000.
• E) $99,000.

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Definitions:

Positive Economic Analysis

An objective approach to economics that focuses on describing and explaining economic phenomena without making normative judgments.

Fallacy of Composition

Erroneous view that what is true for the individual (or the part) will also be true for the group (or the whole).

Association

An organization or group of individuals who voluntarily come together to achieve common goals, often representing a profession, industry, or interest.

Causation

The relationship between cause and effect where one event or action directly leads to another event or action as a result.