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 $30,000 in expenses. Stahl issued stock of $9,000 and paid dividends of $15,000 during the year. The net income reported by Stahl Consulting for the year was:
A) $3,000.
B) $12,000.
C) $18,000.
D) $27,000.

Question

Quizplus · Accepted Answer

Net income is calculated as total revenues minus total expenses. Therefore, net income = $48,000 (revenues) - $30,000 (expenses) = $18,000.

Stahl Consulting Started the Year with Total Assets of $60,000