If the opening balance of borrowings was $330 000,the closing balance was $550 000 and a total of $240 000 was paid off the entity's borrowings during the period,how much additional cash did the entity borrow during the period?

Question

Quizplus · Accepted Answer

To find out how much additional cash the entity borrowed, we need to use the following formula:

Additional Borrowings = Closing Balance - Opening Balance - Amount Paid Off

Substituting the given values, we get:

Additional Borrowings = $550 000 - $330 000 - $240 000
Additional Borrowings = $460 000

Therefore, the additional cash the entity borrowed during the period was $460 000. Option C is the correct answer.

If the Opening Balance of Borrowings Was $330 000,the Closing