The Following Information Applies to the Questions Displayed Below

question 53

Multiple Choice

The following information applies to the questions displayed below
The financial statements of Calloway Company prepared at the end of the current year contained the following elements and corresponding amounts: Assets = $50,000; Liabilities = ?; Common Stock = $15,000; Revenue = $22,000; Dividends = $1,500; Beginning Retained Earnings = $3,500; Ending Retained Earnings = $7,500.
-Based on this information,what was the amount of expenses reported on Calloway's income statement for the current year?

• A)$18,500
• B)$13,000
• C)$16,500
• D)$10,000

---

Definitions:

Fixed Supply

A situation where the quantity of a particular good, service, or resource does not change regardless of price changes.

Farmland

Farmland refers to any agricultural land dedicated to the cultivation of crops or the breeding of livestock, essential for food production and rural livelihoods.

Technological Advances

Innovations and improvements in technology that enhance productivity, efficiency, and can lead to new products or processes.

Output Effect

The possibility that when the price of the first of a pair of substitute resources falls, the quantity demanded of both resources will rise because the reduction in the price of the first resource so greatly reduces production costs that the volume of output created with the two resources increases by so much that the quantity demanded of the second resource increases even after accounting for the substitution effect.