After Closing Entries Are Posted the Balance in the Owner's

question 194

Multiple Choice

After closing entries are posted the balance in the owner's capital account in the ledger will be equal to

• A) the beginning owner's capital reported on the owner's equity statement.
• B) the amount of the owner's capital reported on the balance sheet.
• C) zero.
• D) the net income for the period.

---

Definitions:

Economic Activities

Actions that involve the production, distribution, and consumption of goods and services in an economy.

Accounting Information

Data related to the financial transactions and status of an individual, business, or organization, used for reporting and decision-making purposes.

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue, indicating the company’s financial performance.

Owner Withdraw

Transactions where the owners withdraw cash or other assets from the business for personal use.