The Beginning Capital Balance Shown on a Statement of Owner's

question 4

Multiple Choice

The beginning capital balance shown on a statement of owner's equity is $86,000.Net income for the period is $36,000.The owner withdrew $44,000 cash from the business and made no additional investments during the period.The owner's capital balance at the end of the period is

• A) $78,000.
• B) $94,000.
• C) $122,000.
• D) $166,000.

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Definitions:

SEC

The U.S. Securities and Exchange Commission, an agency responsible for enforcing federal securities laws and regulating the securities industry, stock and options exchanges.

Material Omissions

Failures to include important information in a document or communication, which can significantly alter the understanding of the situation.

Due Diligence

The investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or transaction with another party.

Willful Violations

Deliberate or intentional breaches of the law or regulations, often implying awareness of the illegal nature of the act.