The Following Table Contains Financial Information for Trumpeter Inc What Is Trumpeter's Net Income?
A) $3,500

question 155

Multiple Choice

The following table contains financial information for Trumpeter Inc. before closing entries: $$\begin{array} { | l | r | } \hline \text { Cash } & \$ 12,000 \\\hline \text { Supplies } & 4,500 \\\hline \text { Prepaid Rent } & 2,000 \\\hline \text { Salary Expense } & 4,500 \\\hline \text { Equipment } & 65,000 \\\hline \text { Service Revenue } & 30,000 \\\hline \text { Miscellaneous Expenses } & 20,000 \\\hline \text { Dividends } & 3,000 \\\hline \text { Accounts Payable } & 5,000 \\\hline \text { Common Stock } & 68,000 \\\hline \text { Retained Earnings } & 8,000 \\\hline\end{array}$$ What is Trumpeter's net income?

• A) $3,500.
• B) $2,500.
• C) $5,000.
• D) $5,500.

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Definitions:

Aggregate Demand

The sum of all expenditures on goods and services in an economy, inclusive of private and public spending, investments, and exports minus imports, within a specific timeframe.

Aggregate Demand

The entire appetite for goods and services across an economy, quoted at a chosen price level, during a determined timeframe.

World War II

World War II was a global conflict that lasted from 1939 to 1945, involving most of the world's nations and culminating in significant changes to political boundaries and power structures.

Sticky-Wage Theory

Sticky-Wage Theory suggests that wages are slow to adjust to the equilibrium level due to contracts, worker morale, and employer incentives, contributing to unemployment during economic downturns.