Calculate the missing cash at bank account balance from these statement of financial position items. Equity $5,800; accounts receivable $890; accounts payable $450; inventory $360; loan to a business $1,400.
A)$4,900.
B)$5,400.
C)$3,600.
D)$6,300.

Question

Quizplus · Accepted Answer

The total assets must equal the total liabilities plus equity. Here, the only unknown is the cash at bank. The equation is: Cash at Bank + Accounts Receivable + Inventory + Loan to a Business = Accounts Payable + Equity. Plugging in the numbers: Cash at Bank + $890 + $360 + $1,400 = $450 + $5,800. Solving for Cash at Bank gives $3,600.

Calculate the Missing Cash at Bank Account Balance from These