Of the following, the correct accounting equation is: (1) Assets = Capital + Profit + Liabilities. (2) Profit = Income + Expenses (3) Assets = Capital – Profit – Liabilities. (4) Assets = Capital = Liabilities.

Using the monetarists theory of money, show and explain how a change in money supply causes inflation. (10 marks)
(b) What role do non-financial institutions play in economic development? (10 marks)

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February 6, 2016 4:39 am

Of the following, the correct accounting equation is: (1) Assets = Capital + Profit + Liabilities. (2) Profit = Income + Expenses (3) Assets = Capital – Profit – Liabilities. (4) Assets = Capital = Liabilities.

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