At the End of the Current Accounting Period, Account Balances

question 45

Multiple Choice

At the end of the current accounting period, account balances were as follows: Cash, $15,000; Accounts Receivable, $20,000; Common Stock, $8,000; Retained Earnings, $14,000. Liabilities for the period were:

• A) $13,000.
• B) $20,000.
• C) $27,000.
• D) $32,000.

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Definitions:

Property Taxes

Taxes levied by local governments based on the value of real estate property owned by individuals or businesses.

Payroll Taxes

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff.

Taxable Income

The portion of an individual's or corporation's income that is subject to taxation by the government.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, reflecting the percentage of an additional dollar of income that is paid in taxes.