Emmitt Had the Following Final Balances After the First Year

question 41

Multiple Choice

Emmitt had the following final balances after the first year of operations: assets,$55,000; stockholders' equity,$25,000; dividends,$3,000; and net income,$10,000.What is the amount of Emmitt's liabilities?

• A)$55,000.
• B)$30,000.
• C)$13,000.
• D)$7,000.

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Definitions:

Income Effect

The shift in income for an individual or the economy, and its influence on the demand for a specific good or service.

Wages Increase

The act or occurrence of raising the amount of money that workers are paid for their labor.

Consumer's Optimal

The point at which an individual achieves the best possible satisfaction or utility from the consumption of goods and services, given their budget constraints.

Price of Good

The monetary value assigned to a product or service, determined by various factors including production costs, supply and demand, and competition.