Owner's Capital at the End of the Period Is Equal

question 46

Multiple Choice

Owner's capital at the end of the period is equal to

• A) owner's capital at the beginning of the period plus net income minus liabilities.
• B) owner's capital at the beginning of the period plus net income minus drawings.
• C) net income.
• D) assets plus liabilities.

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Definitions:

Like Units

A term used in manufacturing or project management to describe items or resources that are comparable in function or use, often for the purpose of standardization or simplification.

Work in Process Inventory

Items that are partially completed in the manufacturing process but not yet ready for sale, recorded as current assets on a company's balance sheet.

Finished Goods Inventory

Completed products that are ready to be sold but have not yet been sold to customers.

Product Costs

Costs directly tied to the creation of a product, including raw materials, labor, and manufacturing overhead.