York Casting Services Started the Year with Total Assets of $120,000

question 72

Multiple Choice

York Casting Services started the year with total assets of $120,000 and total liabilities of $60,000.The revenues and the expenses for the year amounted to $150,000 and $50,000,respectively.During the year,the owner did not make any additional contributions,but had withdrawals of $75,000.Calculate the amount of increase or decrease in owner's equity for the year.

• A)a $25,000 increase
• B)a $85,000 increase
• C)a $60,000 decrease
• D)a $75,000 increase

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Definitions:

Non-Monetary Considerations

Factors affecting decision-making that are not related to money, such as emotional well-being, social impact, or environmental concerns.

Human Capital

Investments in people, such as education and health care, that increase their productivity and earnings potential.

Physical Capital

Tangible assets such as buildings, machinery, and equipment used in the production of goods and services.

Human Capital

The sum of abilities, expertise, and non-material assets possessed by people that can generate economic benefits for themselves, their employers, or their local area.