Beginning Assets Were $700,000,beginning Equity Was $225,000,revenue for the Year

question 218

Multiple Choice

Beginning assets were $700,000,beginning equity was $225,000,revenue for the year was $523,000,common stock issued during the year totaled $320,000,expenses for the year were $392,000,ending equity is $751,000,and ending assets are $963,000.
What were the beginning liabilities for the year?

• A) $738,000
• B) $998,000
• C) $131,000
• D) $203,000
• E) $475,000

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Definitions:

Outstanding Common Stock

Shares that are issued by a company and held by investors, excluding any shares held as treasury stock by the company itself.

Annual Amortization

The systematic reduction of the cost (or other basis) of an intangible asset over a specified time period.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.

Initial Value Method

A method of accounting in which an investment is initially recorded at its cost without adjusting for changes in the market value over time.