Question Details

Equity changed by what amount from the beginning of the year 




1.	Liabilities
a.	are future economic benefits.
b.	are existing debts and obligations.
c.	possess service potential.
d.	are things of value used by the business in its operation.


Use the following information for questions 2-4.

Stahl Consulting started the year with total assets of €60,000 and total liabilities of €15,000. During the year, the business recorded €48,000 in catering revenues and €24,000 in expenses. Stahl issued ordinary shares of €9,000 and paid dividends of €15,000 during the year.

2.		The equity at the end of the year was
a.	€63,000.
b.	€54,000.
c.	€24,000.
d.	€6,000.


3.		The net income reported by Stahl Consulting for the year was:
a.	€48,000.
b.	€33,000.
c.	€24,000.
d.	€9,000.


	4.	Equity changed by what amount from the beginning of the year to the end of the year?
a.	€45,000
b.	€42,000
c.	€18,000
d.	€9,000


5. 	At October 1, Smithson Enterprises reported equity of $70,000. During October, capital shares of $10,000 were issued and the company posted a net loss of $6,000. If equity at October 31 totals $70,000, what amount of dividends were paid during the month?
a.	$0
b.	$4,000
c.	$6,000
d.	$10,000




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