Investors buy shares in Quietus Ltd. for $5 million. On Day One of the company's...
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Accounting
Investors buy shares in Quietus Ltd. for $5 million. On Day One of the company's operations, $3 million is spent on assets and $4 million is borrowed from the Bank. By the end of the first month they have also bought $10 million of goods for resale on credit and made sales of $25 million on credit. There is no inventory left. Ignore all other transactions and expenses. The accounting equation at that point in time is a) assets: $34 million; liabilities: $14 million; equity: $20 million b) assets: $34 million; liabilities: $29 million; equity: $5 million c) assets: $9 million; liabilities: $14 million; equity: $5 million d) assets: $19 million; liabilities: $4 million; equity: $15 million
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