Asked by Joseph Zorzoli on May 20, 2024
Verified
Cool Tours had beginning equity of $72,000; revenues of $90,000, expenses of $65,000, and withdrawals by owners of $9,000. Calculate the ending equity.
A) $88,000.
B) $25,000.
C) $97,000.
D) $38,000.
E) $47,000.
Withdrawals
Funds taken out of a business by its owners for personal use.
Expenses
Costs incurred by a business in the process of earning revenues.
- Investigate and determine alterations in equity, and grasp their significance.
Verified Answer
MK
murali kumarMay 26, 2024
Final Answer :
A
Explanation :
The ending equity is calculated as beginning equity + revenues - expenses - withdrawals. So, $72,000 + $90,000 - $65,000 - $9,000 = $88,000.
Learning Objectives
- Investigate and determine alterations in equity, and grasp their significance.