Multiple Choice
Scenario 8.1
Jane left her job at Siemens and started her own boutique.She used to earn $50,000 annually at Siemens.She took a loan of $10,000 and used $20,000 from her personal savings to begin her venture.She agreed to repay the loan with 10% interest.Her business is bringing in $80,000 annually.She has rent and labor expenses of $15,000.Also assume that Jane could have used her own money i.e.$20,000 to buy stocks in Intel which would have returned 5% to her last year.
-Refer to Scenario 8.1 and calculate Jane's accounting profit.
A) $50,000.
B) $65,000.
C) $80,000.
D) $64,000.
E) $35,000.
Correct Answer:
Verified
Correct Answer:
Verified
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