In Completing the Work Sheet,what Is the Reason for Adding

question 94

Multiple Choice

In completing the work sheet,what is the reason for adding the net income for the year to the Balance Sheet Credit column?

• A) Owner's equity is not up-to-date.
• B) Cash is not up-to-date.
• C) Owner's withdrawal is not up-to-date.
• D) Sales is not up-to-date.

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Definitions:

Spot Exchange Rates

Refers to the current exchange rate at which a currency can be bought or sold for immediate delivery.

Foreign Currency

Currency used in a country other than one's own, necessitating exchange for local use.

Depreciates

Depreciates refers to the reduction in the value of an asset over time due to wear and tear, age, or obsolescence, typically reflected in accounting as a method to allocate the cost of an asset over its useful life.

Forward Contract

A customized contract between two parties to buy or sell an asset at a specified future date at a price agreed upon today.