The Net Income of Hendley Company for the Year Is

question 41

Multiple Choice

The net income of Hendley Company for the year is $25,000.Withdrawals during the year were $30,000.No new capital contributions were made during the year.Which of the following statements is TRUE?

• A) Hendley, Capital account decreases by $25,000.
• B) Hendley, Capital account decreases by $5,000.
• C) Hendley, Capital account increases by $30,000.
• D) Hendley, Capital will remain the same.

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Definitions:

Unrealistically High

Describing expectations or goals that are excessively ambitious and difficult or impossible to achieve.

Sympathetic Nervous System

Part of the autonomic nervous system that controls the body's responses to perceived threats, including the fight or flight response.

Cortex

The outer layer of the cerebrum of the mammalian brain, involved in various high-level brain functions such as perception, thought, memory, and decision making.

Emotion-arousing Stimulus

Any event or object in the environment that triggers a specific emotional response.