The Following Information Was Extracted from the Accounting Records of Vogel

question 84

Multiple Choice

The following information was extracted from the accounting records of Vogel Company:
$$\begin{array} { l l } \text { beginning Paid-in Capital } & \$ 90,000 \\\text {beginning Retained Earnings } & \$ 300,000 \\\text { beginning Assets } & \$ 455,006 \\\text { Contributicns by owners } & \$ 0 \\\text { Revenues } & \$ 200,000 \\\text { Expenses } & \$ 155,000\end{array}$$
At the beginning of the period,what is the total amount of liabilities?

• A) $65,000
• B) $100,000
• C) $155,000
• D) $245,000

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Definitions:

Legally Binding

Referring to an agreement or contract that is enforceable by law, obligating the parties involved to fulfill their respective parts of the agreement.

Promise to Donate

A commitment made by an individual or entity to give a gift, often monetary, to a nonprofit or charitable organization.

Illusory

Pertaining to something that is deceptive, misleading, or not based on reality; often used to describe agreements that lack a firm commitment.

Right to Cancel

A legal entitlement allowing a party to terminate an agreement or contract within a specific time frame.