ABC Company Began Business in June When Stockholders Invested $80,000

question 104

Multiple Choice

ABC Company began business in June when stockholders invested $80,000 in the business, which in turn issued its common stock to them. ABC Company then purchased a building for $40,000 cash and inventory for $20,000 cash, performed services for clients for $10,000 cash, purchased supplies for $5,000 cash, and paid utilities of $2,000 cash. What is the amount of total assets?

• A) $80,000
• B) $88,000
• C) $108,000
• D) $163,000

---

Definitions:

Plaintiff

The party who initiates a lawsuit in a court of law, seeking legal remedy or damages from the defendant.

Civil Law Cases

Legal disputes involving private rights and responsibilities between individuals or organizations, distinguished from criminal matters.

Contracts

Legal agreements between two or more parties that are enforceable by law.

Torts

Legal claims based on an act that causes harm or loss to another person, leading to civil legal liability.