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

question 131

Multiple Choice

A company reported the following asset and liability balances at the end of 2015 and 2016: If the company paid dividends totaling $5,000, what is the amount of net income for 2016?

• A)$20,000.
• B)$105,000.
• C)$80,000.
• D)$25,000.

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Definitions:

Nonemployee Agent

An individual or entity that acts on behalf of another party in a business transaction but is not considered an employee.

Nondelegable Duty Of Care

A legal obligation that cannot be transferred to another party and requires a person or entity to exercise a certain standard of care.

Independent Contractor

An individual or entity contracted to perform work for or provide services to another entity as a non-employee.

Bus Driver

A person employed to drive a bus, transporting passengers from one place to another.