During 2012, Smith Corporation Had an Increase in Total Assets

question 73

Multiple Choice

During 2012, Smith Corporation had an increase in total assets of $70,000 and an increase in total liabilities of $90,000. Assuming that capital stock increased by $5,000 and no dividends were paid, calculate Smith's net income or net loss for 2012.

• A) Net loss of $15,000
• B) Net loss of $20,000
• C) Net loss of $25,000
• D) Net income of $15,000

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Definitions:

Promotion Decision Process

The sequence of steps a company follows to plan and execute marketing strategies to increase awareness or sales of a product or service.

Implementation Phase

The stage in a project or plan where strategies are executed and the plan is put into operation.

Planning Phase

The planning phase involves the process of defining business goals, strategies, and actions prior to the implementation stage of a project or business operation.

Evaluation Phase

A stage in a process (such as product development or project management) where the results or outcomes are assessed against predetermined criteria or objectives.