Use the Following Information to Answer the Question Below A Balance Sheet Prepared on December 31,20xx,would Report Total Stockholders

question 111

Multiple Choice

Use the following information to answer the question below. The following accounts appear in the ledger of Sayre Corporation on December 31,20xx:
$\begin{array}{lr}\text { Preferred Stock } & \$ 30,000 \\\text { Common Stock } & 56,000 \\\text { Additional Paid-in Capital, Preferred } & 7,000 \\\text { Additional Paid-in Capital, Common } & 18,000 \\\text { Retained Earnings } & 40,000\end{array}$
A balance sheet prepared on December 31,20xx,would report total stockholders' equity of

• A) $77,000.
• B) $84,000.
• C) $102,000.
• D) $142,000.

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Definitions:

Price Level

An index that measures the average of current prices across the entire spectrum of goods and services produced in the economy compared to a reference point.

Output

The total quantity of goods and services produced by an economic system.

Short Run

A period in economics during which at least one input is fixed while others are variable, commonly used to analyze short-term decision-making.

Long Run

A time frame in economics in which all factors of production and costs are variable, allowing all inputs to be adjusted.