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Which of the Following Statements Is Correct

Question 10

Multiple Choice

Which of the following statements is correct?


A) "Equity" is the original money invested in the business that belonged to the owners of the business.
B) "Equity" is money that the business has used to grow - for example the original investment from owners or money from the sale of shares, and any loans made to the business
C) "Equity" is the value of the business
D) "Equity" is made up of not only the original investment in the business, but also any profits that were retained over the years.

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