Blitz Pty Ltd Has the Following Accounts and Balances Listed

question 13

Multiple Choice

Blitz Pty Ltd has the following accounts and balances listed in its trial balance.Assuming all transactions have been entered correctly,the total debits and credits in the trial balance equal:
$\begin{array}{lr}\text { Capital } & \$ 15000 \\ \text { Cash } & 2000 \\ \text { Accounts payable } & 7000 \\ \text { Inventory } & 5500 \\ \text { Accounts receivable } & 9500 \\ \text { Property, plant and equipment } & 15000 \\ \text { Loan payable } & 24000 \\ \text { Motor vehicles } & 14000\end{array}$

• A) $31 000
• B) $61 000
• C) $43 500
• D) $46 000

Know the financial implications of changing dividend policies based on taxes and investment opportunities.

Calculate projected dividend amounts under various corporate policies and market conditions.

Understand how stock dividends and repurchases influence a firm's financial statements and market valuation.

Interpret the effects of changes in dividend policies on shareholder value and company capital structure.

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Definitions:

Prospect Theory

An economic theory that describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are uncertain.

Framing Effect

The impact on decision making caused by the way information is presented, where different presentations of the same information can lead to different decisions.

Faulty Decisions

Choices made based on incorrect assumptions or incomplete information, leading to suboptimal outcomes.