Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 1, Problem 3MCQ
If the assets of a company increase by $100,000 during the year and its liabilities increase by $35,000 during the same year, then the change in equity of the company during the year must have been:
- a. An increase of $135,000.
- b. A decrease of $135,000.
- c. A decrease of $65,000.
- d. An increase of $65,000.
- e. An increase of $100,000.
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If the assets of a company increase by $100,000 during the year and its liabilities increase by $35,000 during the same year, then the change in equity of the company during the year must have been: a. An increase of $135,000. d. An increase of $65,000. b. A decrease of $135,000. e. An increase of $100,000. c. A decrease of $65,000.
Multiple Choice Quiz: If the assets of a company increase by $100,000 during the year and its liabilities increase by $35,000 during the same year, then the change in equity of the company during the year must have been: a. An increase of $135,000. d. An increase of $65,000. b. A decrease of $135,000. e. An increase of $100,000. c. A decrease of $65,000.
The total assets of Gs Co. is funded by both debt and equity with a debt to equity ratio of 100%. If Gs Co. has a retained earnings breakpoint of P1,225,000, the additions to the retained earnings during the year amounts to
Chapter 1 Solutions
Principles of Financial Accounting.
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