Use the Information Given Below (As at 30 June 2012)

question 64

Multiple Choice

Use the information given below (as at 30 June 2012) to answer the following questions:
$$\begin{array} { l r } &\$\\\text { Share capital } & 100000 \\\text { Equipment } & 150000 \\\text { Inventory } & 30000 \\\text { Accounts receivable } & 20000 \\\text { Accounts payable } & 30000 \\\text { Retained profits } & 80000 \\\text { Cash } & 10000\end{array}$$
Assume no dividends were declared during the year.
-If the balance of retained profits at the start of the year was $50 000,what was the profit for the year?

• A) $30 000
• B) $80 000
• C) $50 000
• D) $40 000.

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Definitions:

Lease Terms

The conditions under which a lease will be granted, including duration, payment intervals, fees, restrictions, and penalties.

Lease Obligations

Financial commitments a company incurs as a result of entering into a lease agreement for property, plant, or equipment.

Lessee

A person or entity that leases an asset from another party, known as the lessor.

Flexibility

The ability of an entity or system to adapt to changes, variability, or uncertainties in its operational environment.