During the Accounting Period There Were No Share Issues,liabilities Increased

question 24

Multiple Choice

During the accounting period there were no share issues,liabilities increased by $45 000,assets increased by $90 000 and net profit was $115 000.Therefore,dividends declared must have been:

• A) $15 000.
• B) $45 000.
• C) $60 000.
• D) $70 000.

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Definitions:

White Settlement

The establishment of communities in a new area by white people, often in regions previously or concurrently inhabited by Indigenous peoples or other ethnic groups.

Crop-Lien System

A form of credit extended to farmers, typically those who grew cotton, where future crops were used as collateral for loans to purchase supplies and land.

Debt

An obligation or liability to pay or render something to another party, which can be a result of borrowing funds or acquiring goods and services.

Crop-Lien System

A credit system used in the Southern United States after the Civil War, where farmers borrowed against future crop yields, leading to debt and economic dependency.