Which of the Following Is an Example of an Owner's

question 62

Multiple Choice

Which of the following is an example of an owner's equity?

• A) A customer pays $3000 for a piece of equipment.
• B) An owner pays $7000 for supplies and equipment.
• C) An individual starts a new business and puts up $5000 of their own money to get started.
• D) The owner is sued and $2000 is paid for retaining an attorney.

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Definitions:

Interest Revenue

Income earned on investments, loans, or accounts receivable that is generated from the interest charged.

Annual Return

The percentage of increase or decrease in the value of an investment over a one-year period, including dividends and appreciation.

Direct Financing Lease

A type of lease where the lessor records receivables equal to the net investment in the lease and recognizes income from interest over the lease term.