At the Beginning of August, 2010, Owners' Equity in Astoria

question 139

Multiple Choice

At the beginning of August, 2010, owners' equity in Astoria was $160,000. Given the transactions of August, what will owners' equity be at the end of the month?

• A) $167,500.
• B) $150,500.
• C) $193,500.
• D) $158,000.

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Definitions:

Income from Operations

Revenue generated from a company's primary business activities, minus operating expenses like wages and cost of goods sold.

Net Sales

Sales income a company retains after accounting for returns, allowances for damaged or missing merchandise, and discounts.

Current Asset

Items of value that are likely to be cashed in, sold off, or expended either within the span of one year or over the course of the entity's standard operational cycle, should that be more extended.

Goodwill

An intangible asset that arises when a company acquires another company for more than the fair value of its net identifiable assets.