If Equity at the Beginning of the Period Is $177,000

question 62

Multiple Choice

If equity at the beginning of the period is $177,000, profit for the period is $87,000 and $25,000 is withdrawn by the owner during the period, equity at the end of the period is:

• A) $115,000
• B) $289,000
• C) $239,000
• D) Cannot be calculated from the information provided.

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Definitions:

Chronological Record

A documentation of events in the order of their occurrence.

Source Documents

Original records that contain the details to support business transactions entered in an accounting system, like invoices, receipts, and contracts.

Credited

The recording of an increase in liabilities, revenues, or equity accounts, or a decrease in assets or expense accounts.

Total Assets

The sum of all resources owned by a company that can be converted into cash or used in the operation of the business to generate revenue.