Scott's Camera Shop started the year with total assets of $80,000 and total liabilities of $40,000.During the year,the business earned revenues of $120,000 and incurred expenses of $70,000.Scott made no capital contributions during the year,but did make withdrawals of $60,000.
-What is the amount of Scott's net income for the year?
A) $50,000
B) $10,000
C) $30,000
D) $40,000

Question

Scott's Camera Shop started the year with total assets of $80,000 and total liabilities of $40,000.During the year,the business earned revenues of $120,000 and incurred expenses of $70,000.Scott made no capital contributions during the year,but did make withdrawals of $60,000. 
-What is the amount of Scott's net income for the year?
A) $50,000
B) $10,000
C) $30,000
D) $40,000

Quizplus · Accepted Answer

A) Calculations: $120,000 - $70,000 = $50,000

Scott's Camera Shop Started the Year with Total Assets of $80,000