Which of the Following Transactions Affect Owner's Equity

question 58

Multiple Choice

Which of the following transactions affect Owner's Equity?

• A) Payment on account
• B) Equipment purchase
• C) Customer payment
• D) A withdrawal

---

Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by dividing current assets by current liabilities.

Current Liabilities

Short-term financial obligations that a company is required to pay within one year, such as accounts payable and short-term loans.

Current Assets

Current assets refer to the resources owned by a company that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of the business.

Profits

The financial gain realized when the revenue from business activities exceeds the expenses and costs.