Following Are Transactions of Gotebo Tanners,Inc

question 64

Multiple Choice

Following are transactions of Gotebo Tanners,Inc.,a new company,during the month of January 2012: 1.Issued 10,000 shares of common stock for $15,000 cash.
2) Purchased land for $12,000,signing a note payable for the full amount.
3) Purchased office equipment for $1,200 cash.
4) Received cash of $14,000 for services provided to customers during the month.
5) Purchased $300 of office supplies on account.
6) Paid employees $10,000 for their first month's salaries.
What was the total amount of Gotebo's liabilities following these six transactions?

• A)$12,300.
• B)$27,300.
• C)$22,600.
• D)$15,500.

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Definitions:

Power Of The Test

The likelihood that a test will correctly reject a false null hypothesis, indicating the test's sensitivity.

Null Hypothesis

A hypothesis that there is no significant difference between specified populations, any observed difference being due to sampling or experimental error.

Alternative Hypotheses

The hypothesis that there is a significant difference between groups, counter to the null hypothesis.

Type II Error

A type of error that occurs when a statistical test fails to reject a false null hypothesis.