Native Dave's Consultants Had the Following Balance Sheet Amounts at the Beginning

question 31

Multiple Choice

Native Dave's Consultants had the following balance sheet amounts at the beginning of the year:
$\begin{array}{lr}\text { Total assets } & \$ 400,000 \\\text { Total owners' equity } & 150,000\end{array}$ During the year,total assets increased by $100,000 and total liabilities increased by $40,000.The company also paid $30,000 in dividends.No other transactions occurred except revenues and expenses.How much is net income for the year?

• A)$30,000
• B)$60,000
• C)$70,000
• D)$90,000

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Definitions:

Activity-based Costing System

An accounting method that assigns costs to products and services based on the activities and resources that go into creating them, providing more precise costing information.

Making Patterns

The process of creating templates or models to be used in manufacturing or craft projects, ensuring consistency and precision in production.

Product Diversity

Refers to the range of different products or services offered by a company, indicating the variety in a company's offerings.

Direct Labour

The workforce engaged directly in the manufacturing process, whose labor costs can be directly attributed to specific products.