Effect of the System on the Behavior of Managers and a Consideration

question 6

Short Answer

Effect of the system on the behavior of managers and a consideration in choosing among accounting systems and methods

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Definitions:

Ending Capital Balance

Ending capital balance is the amount of money a company has in its capital account at the end of a financial period after all financial transactions have been accounted for.

Beginning Capital Balance

The amount of capital at the start of a financial period before any transactions have been accounted for during the period.

Withdrawals

Money or assets taken out from a business by its owner for personal use or from a bank account by the account holder.

Investments

Assets acquired with the goal of generating income or increasing in value over time.