Lori Nichols Opened an Engineering Office and Titled the Business

question 52

Multiple Choice

Lori Nichols opened an engineering office and titled the business Engineering Enterprises P.C.During its first month of operations,it completed the following transactions: I.Lori invested $30,000 in the business,which in turn issued common stock to her.
V.The business borrowed $8,000 from the bank,issuing a note payable.
At the end of the month,Cash would equal:

• A)$30,000.
• B)$37,000.
• C)$43,000.
• D)$61,000.

---

Definitions:

Capital Balances

The amount of money that owners have invested in a business, reflected in the equity section of the balance sheet.

Partners' Capital Statement

A financial statement that shows the changes in the account balances of each partner's equity in a partnership over a period.

Net Income

A company's finalized earnings after all financial obligations, including taxes, have been removed from total income.

Income Sharing

A strategy where an organization's profits are distributed among its employees or other stakeholders.