Chrystal Gems Ltd Was Set Up with Share Capital of $500

question 18

Multiple Choice

Chrystal Gems Ltd was set up with share capital of $500 000.In year 1 a loss of $50 000 was recorded,in year 2 a profit of $175 000 and in year 3 a profit of $350 000.Also in year 3 a dividend of 5% of paid up capital was paid to shareholders and $20 000 was transferred from retained earnings to a general reserve.The retained earnings balance of Chrystal Gems Ltd at the end of year 3 was:

• A) $430 000
• B) $475 000
• C) $930 000
• D) $530 000

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Definitions:

Predictable Components

Elements or patterns within a dataset or system that can be anticipated based on historical data or certain trends.

Forecasting

The process of making predictions about future events or trends based on historical data or analysis.

Seasonal

Relating to or occurring at a specific season of the year, often causing fluctuations or patterns in data or activity.

Time Series

A sequence of data points collected or recorded at successive points in time, typically at equally spaced intervals.