If a Business Starts the Year with Equity of £1

question 29

Multiple Choice

If a business starts the year with equity of £1.5m,ends the year with £1.8m and inflation is at 10%,how much can it pay out in profit if an Historic Cost approach is taken?

• A) 0.15m
• B) 0.3m
• C) 0.18m
• D) 0.03m

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Definitions:

Hypothalamic-Pituitary-Adrenal Axis

A complex set of direct influences and feedback interactions among the hypothalamus, pituitary gland, and adrenal glands regulating stress response, digestion, immune system, mood, and energy storage.

Depression

A psychological condition marked by a continuous state of low mood or a lack of enthusiasm in activities, leading to a considerable disruption in daily functioning.

Benzodiazepine

A class of drugs primarily used for treating anxiety, but also used in managing insomnia, seizures, and muscle spasms, functioning by enhancing neurotransmitter activity in the brain.

Anxiety

Anxiety is a mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one’s daily activities.