During 2019, Beta Ltd incurred expenses of $25 000 and earned a net profit of $5 000. Retained profits at 1 January 2019 stood at $7 000, and dividends declared and paid totalled $3 000. What were the revenues of Beta Ltd during 2019?

Question

Quizplus · Accepted Answer

Revenues = Expenses + Net profit - Dividends
Revenues = $25 000 + $5 000 - $3 000
Revenues = $27 000
However, this calculation only gives the total revenue for the year. The question specifically asks for the revenues earned during 2019, which would exclude any revenue earned in previous years. Therefore, the correct answer is C) $30 000, as this is the only option that is higher than the total expenses incurred during 2019.

During 2019, Beta Ltd Incurred Expenses of $25 000 and Earned