Gatto Production Services Started the Year with Total Assets of $90,000

question 52

Multiple Choice

Gatto Production Services started the year with total assets of $90,000 and total liabilities of $40,000.The revenues and the expenses for the year amounted to $130,000 and $80,000,respectively.During the year,the owner did not make any additional contributions,but had withdrawals of $55,000.Calculate Gatto's net income for the year.

• A)$50,000
• B)$130,000
• C)$80,000
• D)$90,000

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Definitions:

Fund-raising Activity

The act or process of gathering financial support for a cause, project, or organization, often through donations or events.

Fund-raising Process

The systematic approach to soliciting and gathering voluntary contributions of money or resources.

Nonprofit Organization

An organization that operates for a public or social benefit, rather than to generate profit for owners or shareholders.

Sources of Gifts

Various origins from which donations or gifts can come, including individuals, corporations, foundations, and government entities.