- 1 Marks
FA – Nov 2013 – L1 – SA – Q2 – Accounting from Incomplete Records
Identifying the correct business equation to determine closing net assets.
Question
For most small businesses, accounting records are either not available or incomplete. Which of the following business equations will be most appropriate to use in determining closing net assets?
A. Opening net assets + drawings – profit + capital introduced
B. Capital introduced + profit + drawings – opening net assets
C. Opening net assets + capital introduced + loss – drawings
D. Opening net assets + capital introduced + profit + drawing
E. Opening net assets + capital introduced + profit – drawings
Find Related Questions by Tags, levels, etc.
- Tags: Accounting Equations, Incomplete Records, Net Assets
- Level: Level 1
- Topic: Accounting from Incomplete Records
- Series: NOV 2013
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