2004 hsc multi choice q help (1 Viewer)

360flip

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the answer is (a)

but what is the equation for the value of retained profits? thanks
 

Lobsey

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The equation you are looking for is simply A=L+OE.

Assets (A) are things of value. The business needs to get the money to pay for these things either from money within the business (Owner's Equity) or they borrow money from outside the business (L = Liabilities).
 

shinji

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(30,000 + 15,000 + 20,000 + 30,000) - (60,000 + 10,000)
(assets = L + O.E (Owners Equity is also known as Shareholders Funds or Propieter Funds[ not too sure about the last one ] ) )

=> 95,000 - 70,000 = 25,000
 

hopeles5ly

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I'm hoping that in the first two weeks, our class doesn't get up to finance, so that we won't have it in our trials.
 

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