Fred Who Owns His Own Business Pays in an Extra

question 10

Multiple Choice

Fred who owns his own business pays in an extra £40000 to the business bank account and also transfers his car worth £15000 into the business. He then raises a loan from the bank of £20000 and agrees with the bank manager that he can have an overdraft facility of up to £15000. What is total equity and liabilities at the end of the year?

• A) Equity £40000 and liabilities £35000
• B) Equity £40000 and liabilities £20000
• C) Equity £55000 and liabilities £35000
• D) Equity £55000 and liabilities £20000

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Definitions:

Compulsive Buyers

Individuals who have an uncontrollable urge to purchase items, often leading to financial and emotional distress.

Media Messages

Communications delivered through various media channels that can influence public opinion, behavior, and understanding of various issues.

Pathological Gambling

A disorder characterized by a persistent and recurrent maladaptive gambling behavior that disrupts personal, family, or vocational pursuits.

Neuroadaptation

The process by which the brain adapts to changes in its environment, often in response to the repeated use of substances, leading to dependence or tolerance.