The Capital Account of a Sole Trader Was Credited with $5000

question 4

Multiple Choice

The capital account of a sole trader was credited with $5000. Which of these items would not give rise to such a credit?

• A) The business earned a profit of $5000.
• B) The owner brought in a private car valued at $5000 for business use.
• C) The owner introduced $5000 new capital.
• D) The owner paid an outstanding private gambling debt of $5000 from the business bank account.

Analyze the effects of stock transactions across different points in time, including the purchase, sale, and dividends received.

Calculate the total dividend income based on shares held and dividend policies.

Understand the procedure and financial implications of stock splits and their effect on market price per share.

Evaluate the impact of residual dividend policy on the payout amounts to shareholders.

---

Definitions:

Deductive Reasoning

A reasoning method where the outcome is derived from the agreement of several statements that are usually considered accurate.

Empirical Reasoning

A method of thought that involves making conclusions based on observed and verified evidence.

Ideological Reasoning

The process of thinking that is heavily influenced by a predetermined set of beliefs or ideology.