The statement of financial position at December 31, 2014 reports equity of
A) €420,000.
B) €330,000.
C) €180,000.
D) €162,000.

Name: The statement of financial position at December 31, 2014 reports equity of A) €420,000. B) €330,000. C) €180,000. D) €162,000.
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Question

Quizplus · Accepted Answer

Equity can be calculated as Assets - Liabilities. From the statement of financial position, Assets = €780,000 and Liabilities = €450,000. Therefore, Equity = €780,000 - €450,000 = €330,000.

The Statement of Financial Position at December 31, 2014 Reports