At the End of the Current Year, the Equity in Durante

question 120

Multiple Choice

At the end of the current year, the equity in Durante Co. is $360,000. During the year the assets of the business had increased by $68,000, and the liabilities had increased by $118,000. Equity at the beginning of the year must have been:

• A) $410,000.
• B) $310,000.
• C) $546,000.
• D) $174,000.

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Definitions:

Equilibrium Price

Equilibrium Price is the market price at which the quantity of goods supplied equals the quantity of goods demanded.

Equilibrium Quantity

The quantity of goods or services sold where the supply and demand curves intersect, indicating a balance between supply and demand.

Trade

The exchange of goods or services between individuals, firms, or countries.

Consumer Surplus

The discrepancy between what consumers are prepared and able to spend on a product or service and the actual amount they end up paying.