Assume the Opening Balance of Equity (01/07/2014)is $1,400,000

question 41

Multiple Choice

Assume the opening balance of equity (01/07/2014) is $1,400,000.During 2014/15,there was a share issue of $540,000,dividends declared of $280,000 and a profit for the year of $710,000,What is the equity balance on the 30/06/2015?

• A) $2,650,000
• B) $2,370,000
• C) $2,930,000
• D) Not enough data to calculate the closing balance.

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Definitions:

Interest Expense

Interest expense refers to the cost incurred by an entity for borrowed funds over a period of time.

Semiannually

Semiannually implies an occurrence or calculation that happens twice a year, often used in the context of interest payments or reporting periods.

Annually

Occurring once every year or relating to a period of one year.

Current Yield

Yearly returns in the form of interest or dividends as a ratio of the security's present price.