A business has the following in it: - Land 750 000 - Machinery 40 000 - Cash 10 000 - Owner's equity 450 000 - Loan 250 000 - Creditors? What is the value of the creditors? A) 100 000 B) 7 00 000 C) 900 000 D) 1500 000

A business has the following in it: - Land 750 000 - Machinery 40 000 - Cash 10 000 - Owner's equity 450 000 - Loan 250 000 - Creditors? What is the value of the creditors? A) 100 000 B) 7 00 000 C) 900 000 D) 1500 000

Name: A business has the following in it:- Land 750 000- Machinery 40 000- C
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Description: A business has the following in it:- Land 750 000- Machinery 40 000- Cash 10 000- Owner's equity 450 000- Loan 250 000- Creditors? What is the value of the creditors? A) 100 000B) 7 00 000C) 900 000D) 1500 000 please show how you got it

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

A business has the following in it:

- Land 750 000

- Machinery 40 000

- Cash 10 000

- Owner's equity 450 000

- Loan 250 000

- Creditors?

What is the value of the creditors?

A) 100 000

B) 7 00 000

C) 900 000

D) 1500 000

please show how you got it

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Please help, thanks in advance ?