Metropolitan Casting Services Started the Year with Total Assets of $130,000

question 203

Multiple Choice

Metropolitan Casting Services started the year with total assets of $130,000 and total liabilities of $60,000.The company is a sole proprietorship.The revenues and the expenses for the year amounted to $130,000 and $50,000,respectively.During the year,there were no new capital contributions and the owner withdrew $60,000.Calculate the amount of increase or decrease in owner's equity for the year.

• A) a $20,000 increase
• B) a(n) $90,000 increase
• C) a(n) $70,000 decrease
• D) a $60,000 increase

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Definitions:

Strategy

A high-level plan or set of actions designed to achieve long-term or overall aims and objectives, often within a competitive environment or to solve a problem.

Support Activities

Functions or operations that help make a business's primary activities more efficient, such as procurement, technology development, human resource management, and firm infrastructure.

Create Value

The process of increasing the worth of products, services or businesses through improvement or innovation.

Differentiation Strategy

A business approach where a company develops unique products or services to stand out from competitors in its market.