[The Following Information Applies to the Questions Displayed Below

question 92

Multiple Choice

[The following information applies to the questions displayed below.]

Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions)

Acquired $6,000 cash from issuing common stock.
Borrowed $4,400 from a bank.
Earned $6,200 of revenues.
Incurred $4,800 in expenses.
Paid dividends of $800.

Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions)

Acquired an additional $1,000 cash from the issue of common stock.
Repaid $2,600 of its debt to the bank.
Earned revenues, $9,000.
Incurred expenses of $5,500.
Paid dividends of $1,280.

-What is the amount of total assets that will be reported on Lexington's balance sheet at the end of Year 1?

• A)$11,000
• B)$12,000
• C)$1,600
• D)$7,600

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Definitions:

Government Spending

Expenditures made by the government for goods and services that it uses to provide public services and for social welfare.

Marginal Analysis

Scrutinizing the bonus benefits of an activity alongside the supplementary costs it brings.

Additional Slice

Refers to an extra unit or portion of a product or service added beyond the current amount.

Efficiency

The optimal use of resources to achieve the desired ends with minimum waste or effort.