Assume the Opening Balance of Equity (01/07/2017)is $1,500,000

question 18

Multiple Choice

Assume the opening balance of equity (01/07/2017) is $1,500,000. During 2017/18, there was a share issue of $540,000, dividends declared of $280,000 and a profit for the year of $75,000, What is the equity balance on the 30/06/2018?

• A)$2,650,000
• B)$2,370,000
• C)$1,835,000
• D)Not enough data to calculate the closing balance.

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Definitions:

Finished Goods Inventory

The stock of completed products available for sale.

Unit Sales

The total quantity of an inventory item that a business sells to its customers within a specific period.

Credit Sales

Sales made on credit, which allow the buyer to pay the seller at a later date, typically recorded as accounts receivable.

Cash Expenditures

The total amount of money a company spends on acquiring physical goods, services, or assets in a given period.