Solution-What is the equity at the end of the period

What is the equity at the end of the period

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Reference no: EM132761494

Problem 1: The entity started the year with total assets of $90 000 and total liabilities of $40 000. During the year the business earned $45 000 in profit and paid $4000 dividends. However, there was a $5000 income received in advance incorrectly recorded as income earned. After correcting the mistake, what is the Equity at the end of the period:

A. $46 000.

B. $86 000.

C. $91 000.

D. $96 000.

E. None of the above.

Problem 2: A high times debtors turnover indicates:

A. the entity's sales have increased.

B. a large percentage of the entity's sales are on credit.

C. customers are clearing debts more quickly.

D. customers are clearing debts more slowly.

E. sales have decreased.

Reference no: EM132761494

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What is the equity at the end of the period

Reference no: EM132761494

Reference no: EM132761494

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