A Company Had the Following Balance Sheet Amounts at the Beginning

question 139

Multiple Choice

A company had the following balance sheet amounts at the beginning of the year: $\begin{array}{llcc} \text { Total assets } & \$ 650,000 \\ \text { Total stockholder's equity } & 250,000\end{array}$
During the year,total assets increased by $350,000,total liabilities increased by $100,000,and dividends were paid in the amount of $300,000.No other transactions occurred except revenues and expenses.How much is net income for the year?

• A)$750,000
• B)$650,000
• C)$500,000
• D)$550,000

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Definitions:

Cash Balance

The amount of currency and liquid instruments in a company's possession that can be readily used for transactions.

Check

A written order directing the bank to pay a certain sum to a designated party.

Check Register

A record book or digital log used to track checks written, deposits made, and current account balances.

Deposit

A sum of money placed into an account or given as a part payment towards a purchase, often to secure it or show commitment.