Caroline Is an Artist

question 22

Multiple Choice

Caroline is an artist.She purchases canvas,paints,brushes,and accessories for $75.She sells one of her original paintings to an art gallery for $1,500,which,in turn,sells it to an art lover for $4,500.How much value does the gallery add?

• A)$1,425
• B)$1,500
• C)$3,000
• D)$4,500

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Definitions:

Partial Worksheet

A preliminary financial document used internally to prepare for the completion of the full financial statements.

Adjusted Trial Balance

A statement that lists all the accounts and their balances after adjusting entries are made, used to prepare financial statements.

Financial Statement Column(s)

Columns in financial statements that organize data, such as assets, liabilities, and equity, to convey a company's financial position or performance.

Net Income

The net income of a business following the subtraction of all costs and tax obligations from its total earnings.