Been There Used Furniture began operation on January 1, 2019, with an initial investment of $100,000 from each of its five stockholders. During the year, the company had net income of $200,000 and paid dividends of $50,000.
-Refer to Been There Used Furniture. If the company's revenues were $500,000 for the year ended December 31, 2019, how much were total expenses?
A)$300,000
B)$250,000
C)$350,000
D)$800,000

Question

Quizplus · Accepted Answer

Net income is calculated as Revenues - Expenses. Given that the net income is $200,000 and the revenues are $500,000, the expenses must be $300,000 ($500,000 - $200,000 = $300,000).

Been There Used Furniture Began Operation on January 1, 2019