The Following Information Is Available Regarding Grace Smit's Capital Account

question 33

Multiple Choice

The following information is available regarding Grace Smit's capital account in Enterprise Consulting Group, a general partnership, for a recent year: Beginning of the year balance $22,000
Share of partnership income $ 8,500
Withdrawals made during the year $ 6,000
What is Smit's partner return on equity during the year in question?

• A) 36.6%
• B) 34.7%
• C) 10.8%
• D) 11.4%
• E) 55.7%

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Definitions:

Annual Financial Advantage

Describes the financial benefit or gain achieved by an entity over the course of a fiscal year, encompassing all revenue streams and savings.

Variable Costs

Costs that vary directly with the level of business activity.

Variable Costs

Costs that vary in total directly and proportionately with changes in the activity level or volume of output.

Financial Advantage

The benefit or edge that a business or individual has that allows them to generate more income or wealth compared to others.