Metropolitan Casting Services Started the Year with Total Assets of $130,000

question 203

Multiple Choice

Metropolitan Casting Services started the year with total assets of $130,000 and total liabilities of $60,000.The company is a sole proprietorship.The revenues and the expenses for the year amounted to $130,000 and $50,000,respectively.During the year,there were no new capital contributions and the owner withdrew $60,000.Calculate the amount of increase or decrease in owner's equity for the year.

• A) a $20,000 increase
• B) a(n) $90,000 increase
• C) a(n) $70,000 decrease
• D) a $60,000 increase

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Definitions:

Normative Social Influence

Influence resulting from a person’s desire to gain approval or avoid disapproval.

Shoplift

The act of stealing goods from a retail establishment without paying for them.

Fundamental Attribution Error

The tendency to overestimate the effect of personality or disposition and underestimate the influence of situational factors when explaining others' behavior.

Peripheral Route Persuasion

Attitude-change path in which people are influenced by incidental cues, such as a speaker’s attractiveness.