In the Current Year, Taylor Company Incurred a Net Loss

question 55

Multiple Choice

In the current year, Taylor Company incurred a net loss of $70,000. The owner of the company regularly invested $7,000 per month in the business. The owner's capital account will show a net:

• A) increase of $7,000.
• B) increase of $14,000.
• C) decrease of $63,000.
• D) increase of $77,000.
• E) decrease of $7,000.

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Definitions:

Wedge Brakes

An air foundation brake system in which an air chamber forces a wedge between brake shoes forcing them into a brake drum to effect retarding force. Wedge brakes are usually actuated on both sides (unlike S-cam brakes) and so have higher theoretical braking efficiencies.

Maintenance Costs

The expenses associated with keeping an item, equipment or property in its best operating condition, including repairs, replacements, and routine check-ups.

Dry Cement

A powdery substance made by calcining lime and clay, used with water to make concrete, mortar, or plaster.

Dry Bulk Pressure Hopper

A container designed for transporting dry bulk materials, utilizing pressurized air to aid in the unloading process.