2004 hsc multi choice q help (1 Viewer)

[360flip]

the answer is (a)

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

 

[Mc_Meaney]

Ahh. Mate if you look at 2004 marking guide, it will tell you the answer for 12 is actually (c)

The way to work it out is to make both sides equal.

http://www.boardofstudies.nsw.edu.au/hsc_exams/hsc2004exams/pdf_doc/bus_studies_er_04.pdf

 

[Lobsey]

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]

(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]

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.