A Company Reported the Following Asset and Liability Balances at the End

question 92

Multiple Choice

A company reported the following asset and liability balances at the end of 2015 and 2016: During 2016, cash dividends of $50,000 were declared and paid, and common stock was issued for $100,000. What was the amount of net income for 2016?

• A)$400,000.
• B)$480,000.
• C)$350,000.
• D)$300,000.

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Definitions:

Accounting Concept

Fundamental principles or theories that underpin the practice and procedure of accounting.

Manufacturing Business

This type of business produces goods from raw materials through a combination of manual labor and machines.

Finished Goods Inventory

Manufactured products that are complete and ready for sale but have not yet been sold to customers.

Ready For Sale

Inventory items that have completed the production process and are available for purchase by consumers.