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:

Z Scores

An index showing the variance of a specific value from the mean of a group, calculated through its number of standard deviations from the mean.

Probability

A measure of the likelihood that an event will occur, defined on a scale from 0 to 1.

Confidence

The degree to which one can be certain about the accuracy of a result, often quantified in statistics through a confidence interval.

Skewness

A measure of the asymmetry of the probability distribution of a real-valued random variable about its mean.