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.

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Definitions:

Offeror

The party in a contractual agreement who makes an offer to enter into a contract, awaiting acceptance by the offeree.

Stipulates

Specifies expressly, setting out terms or conditions clearly within an agreement or document.

Effective Upon Dispatch

A legal principle stating that an offer, acceptance, or revocation becomes effective when it is sent, not when it is received.

Specified

Clearly identified or defined in detail.