Calculate the Profit for the Year If Capital at the Beginning

question 21

Multiple Choice

Calculate the profit for the year if capital at the beginning is $45,000, capital at the end is $40,000 and during the year the owner withdrew $15,000.

• A)$5,000.
• B)$15,000.
• C)$10,000.
• D)$20,000.

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Definitions:

Forward Contracts

Financial derivatives that obligate the buyer to purchase, and the seller to sell, a particular asset at a predetermined future date and price.

Specified Limit

A predefined restriction or boundary that determines the maximum or minimum value that an action or decision may reach.

Countries

Nations with defined territories and governments, recognized by the international community, with a population and sovereignty.

Eurodollar Transactions

Financial transactions involving U.S. dollars deposited in banks outside the United States, often used in international lending and finance.