The Total Assets and the Total Liabilities of Atlas Financial

question 203

Multiple Choice

The total assets and the total liabilities of Atlas Financial Services are shown below. The company issued no common stock and paid no dividends during the year. $$\begin{array} { | l | r | r | } \hline & \text { Total Assets } & \text { Total Liabilities } \\\hline \text { Beginning of year } & \$ 405,000 & \$ 295,000 \\\hline \text { End of year } & 455,000 & 305,000 \\\hline\end{array}$$ What was the amount of net income for the year?

• A) $50,000
• B) $10,000
• C) $40,000
• D) $60,000

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Definitions:

Price Elasticity

Understanding the relationship between price movements and the corresponding changes in demand for a good.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at various price levels.

Marginal Value

The additional benefit gained from consuming or producing one more unit of a good or service.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service versus what they actually pay.