Your Ledger Accounts Have the Following Balances What Is the Balance of the Capital Account?
A)$ 275

question 20

Multiple Choice

Your ledger accounts have the following balances: $\begin{array}{|l|r|}\hline \text { Cash } & 15,000 \\\hline \text { Debtors } & 125,000 \\\hline \text { Creditors } & 92,000 \\\hline \text { Capital } & ? ? ? \\\hline \text { Equipment } & 175,000 \\\hline \text { Sales } & 289,000 \\\hline \text { Inventory } & 42,000 \\\hline \text { Drawings } & 22,000 \\\hline \text { Expenses } & 48,000 \\\hline \text { Cost of Sales } & 140,000 \\\hline\end{array}$ What is the balance of the Capital account?

• A)$ 275 000
• B)$ 138 000
• C)$186 000
• D)$243 000

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Definitions:

Emotionally Desirable

Attributes or situations that are appealing or sought after due to the positive emotions they elicit.

Discounting Principle

A concept in social psychology that suggests when there are multiple possible causes for a behavior, less significance is given to any single cause.

Correspondent Inference

An inference about a person's disposition or character based on observed behavior, especially when the behavior is freely chosen.

Consensus Effect

The tendency for people to overestimate the extent to which others share their views, beliefs, and experiences.