During 2010,Smith Corporation Had an Increase in Total Assets of $70,000

question 87

Multiple Choice

During 2010,Smith Corporation had an increase in total assets of $70,000 and an increase in total liabilities of $90,000.Assuming that capital stock increased by $5,000 and no dividends were paid,calculate Smith's net income or net loss for 2010.

• A)Net loss of $15,000
• B)Net loss of $20,000
• C)Net loss of $25,000
• D)Net income of $15,000

---

Definitions:

Period of Time

A length or duration of moments which is measured in terms of seconds, minutes, hours, days, months, or years.

Capacity Decision

A determination made regarding the amount of production resources needed to meet expected demand.

Variable Costs

Costs that vary directly with the level of production or the volume of output.

Special Assumption

A specific condition assumed to be true for the purpose of a theoretical framework or model, which may not apply in all real-world situations.