Question

In the scenario where a man steals N500 from a shop, then purchases an item worth $200, receiving $300 in change, how much did the shop lose?

a) N500
b) $200
c) $300

Answer 1

The shop's total loss is N500, which is the value of the cash stolen. The item and change are accounted for within this amount, so they do not represent additional losses.

Step-by-step explanation:

The correct answer is option a) N500. To calculate the loss for the shop, consider the initial theft and the subsequent transaction separately. First, the man steals N500, so the shop is down by that amount. Then, the man uses this stolen N500 to buy an item worth $200. The shop gives him $300 in change.

From the shop's perspective, the $200 item and the $300 in cash are both losses on top of the initial N500 theft. However, because the $500 used to pay for the item was stolen from the shop itself, the real loss is only the item's value and the change given. Since the stolen N500 financed these transactions, the shop doesn't lose twice on that amount. Thus, the shop's total loss is the value of the stolen cash, which is N500.