If your checking account has grown from \$2,000 to \$2,500 over the course of a year, and you made no additional deposits or withdrawals, what is the net sales for the year?

• A. \$0
• B. \$2,000
• C. \$2,500
• D. \$500

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the problem. The checking account balance has increased from \$2,000 to \$2,500 over the course of a year, with no additional deposits or withdrawals. This implies the growth is due to net sales or income generated during the year.
2. Step 2: Calculate the change in the account balance. Subtract the initial balance (\$2,000) from the final balance (\$2,500). Use the formula: \( \text{Change in Balance} = \text{Final Balance} - \text{Initial Balance} \).
3. Step 3: Interpret the result of the calculation. The change in balance represents the net sales or income for the year, as no other transactions (deposits or withdrawals) occurred.
4. Step 4: Compare the calculated change in balance to the provided answer choices (\$0, \$2,000, \$2,500, \$500) to determine the correct answer.
5. Step 5: Verify the logic. Ensure that the increase in the account balance aligns with the concept of net sales, as no other factors influenced the account growth.