ABC Restaurant Pty Ltd Started the Year with Total Assets

question 44

Multiple Choice

ABC Restaurant Pty Ltd started the year with total assets of $90 000 and total liabilities of $40 000.During the year the business earned $100 000 in income and incurred $55 000 in expenses.Dividends paid were $10 000.
Equity at the end of the period was:

• A)$50 000.
• B)$85 000.
• C)$35 000.
• D)$45 000.

---

Definitions:

Self-Regulatory Association

An organization created by members of an industry to enforce fair and ethical practices within that industry without direct government intervention.

Better Business Bureau

A nonprofit organization focused on advancing marketplace trust, providing reviews on businesses, and handling consumer complaints.

Variable Costs

Expenses that change in proportion to the activity or volume of a business.