BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Alicia Keyes Company began the year with owner’s equity of $280, 000. During the year, the company recorded revenues of $375, 000, expenses of $265, 000, and had owner drawings of $30, 000. What was Alicia Keyes’ owner’s equity at the end of the year?
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$420, 000.
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$390, 000.
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$360, 000.
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$280, 000.
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Explanation:
Detailed explanation-1: -Owner’s equity can be calculated by adding up all of the assets of the business and subtracting or deducting all the liabilities.
Detailed explanation-2: -It is calculated by deducting all liabilities from the total value of an asset (Equity = Assets – Liabilities).
Detailed explanation-3: -Owner’s equity is calculated by adding up all of the business assets and deducting all of its liabilities.
Detailed explanation-4: -capital. refers to the dollar amount of the owner’s equity in the business.
There is 1 question to complete.