Paul commenced business with $150 cash. He purchased goods for $75 that were later sold for $125. The statement of financial position, after the sale, would show a total business wealth of:

Question

Quizplus · Accepted Answer

The initial cash balance of $150 was used to purchase goods for $75, leaving the business with $75 in cash and $75 worth of goods. After selling the goods for $125, the business now has $200 in cash ($75 initial + $125 from sale) and no inventory. Therefore, the total business wealth is $200.

Paul Commenced Business with $150 Cash