Determine the Ending Owner's Equity of a Business Having a Beginning

question 77

Short Answer

Determine the ending owner's equity of a business having a beginning owner's equity of $ 9,500, additional investments of $450, withdrawals of $ 1,000, and net income of $ 1,400.

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Definitions:

Risk-Averse

A characteristic of individuals who prefer to avoid risk and would rather choose an option with a more certain but possibly lower return over an uncertain option with a potentially higher return.

Total Utility

The total satisfaction received from consuming a certain quantity of goods or services.

Increasing Marginal Utility

A situation in which each additional unit of a good or service consumed provides more utility or satisfaction than the previous one.

Diminishing Marginal Utility

The economic principle stating that as a person consumes more of a good, the additional satisfaction gained from each additional unit of that good decreases.