On January 1 of the Current Year, Jimmy's Sandwich Company

question 168

Multiple Choice

On January 1 of the current year, Jimmy's Sandwich Company, Inc. reported stockholders' equity totaling $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year the business paid $20,000 to the stockholders. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in stockholders' equity during the year was:

• A)A decrease of $9,500.
• B)An increase of $9,500.
• C)An increase of $30,500.
• D)A decrease of $30,500.
• E)An increase of $73,500.

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Definitions:

Correlation Coefficient

A numerical index that reflects the degree of linear relationship between two variables, ranging from -1 to +1.

Variable

An element, feature, or factor that is likely to vary or change; in research, it is something that is measured or manipulated to assess its effects on an outcome.

Statistic

A numerical value that describes or summarizes some aspect of a set of data.

Distribution

The way in which values in a dataset are spread out or clustered across a range.