If equity at the beginning of the accounting period was $120 000 and at the end of the period was $175 000,and drawings by the owner during the period were $30 000,how much profit was earned during the period?
A)$85 000
B)$55 000
C)$25 000
D)$30 000

Question

Quizplus · Accepted Answer

The profit can be calculated by adding the drawings to the increase in equity: ($175,000 - $120,000) + $30,000 = $85,000.

If Equity at the Beginning of the Accounting Period Was