Gloria uses $10,000 from her savings (earning 5% interest) to open a business. After the first year, Gloria incurs a loss of $15,000, which includes the interest that was lost when she withdrew funds from savings. Her accounting loss is:

Question

Quizplus · Accepted Answer

Gloria lost $15,000 in the business, including the $500 interest she lost by withdrawing the $10,000 from savings. So her accounting loss is $15,000 - $500 = $14,500.

Gloria Uses $10,000 from Her Savings (Earning 5% Interest) to Open