After Posting the First Closing Entry to the Owner's Capital

question 71

Multiple Choice

After posting the first closing entry to the owner's capital account, the balance will be increased (decreased) by

• A) zero
• B) owner's equity
• C) revenues for the period
• D) the net income (net loss) for the period

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Definitions:

Wheat Futures

Contracts that specify the future delivery of a certain amount of wheat at a predetermined price.

Price Increase

An upward movement in the price of a good, service, or asset, often due to factors like demand growth or supply constraints.

Long Position

Holding an asset with the expectation that it will increase in value, often contrasted with taking a short position, betting on a decline in value.

Futures Contracts

Futures contracts are standardized legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.