Winsome Inc

question 74

Multiple Choice

Winsome Inc.reports total assets and total liabilities of $225,000 and $100,000,respectively,at the conclusion of its first year of business.The company earned $75,000 during the first year and distributed $30,000 in dividends.What was the corporation's share capital?

• A)$125,000
• B)$95,000
• C)$80,000
• D)$50,000

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Definitions:

Payroll Taxes

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay to their staff.

Current Liability

Financial obligations a company owes and is expected to pay within a year.

Long-term Liability

A debt or obligation not due within the current accounting year, requiring repayment over a longer period.

Warranty Repairs

Services provided to repair or fix products free of charge under a warranty agreement, considered a contingent liability when the product is sold.