A Company Had the Following Account Balances at Year-End

question 96

Multiple Choice

A company had the following account balances at year-end:
Cash…………………………………………$30,000
Accounts receivable………………………… 32,000
Accounts payable…………………………… 20,000
Fees earned…………………………………..65,000
Rent expense…………………………………15,000
Insurance expense……………………………..4,800
Supplies………………………………………..5,000
Common Stock………………………………..5,000
Retained Earnings………………………… ..14,800
Dividends…………………………………… 18,000
If all of the accounts have normal balances,what are the totals for the trial balance?

• A)$45,200
• B)$67,000
• C)$104,800
• D)$209,600
• E)$186,600

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Definitions:

Start-Up Cost

Expenses incurred before a business begins operating, including costs such as legal fees, marketing, equipment purchases, and rent.

Crossover Rate

The point at which two or more projects have the same net present value or rate of return, used in capital budgeting to compare projects.

Mutually Exclusive

Situations or events that cannot occur at the same time, often referring to investment choices or project decisions in finance.

Required Rate

The minimum return an investor expects to achieve by investing in a project, often used as a benchmark to assess its viability.