If the Amount of Net Income for the Current Period

question 45

Multiple Choice

If the amount of net income for the current period exceeds the amount of the owner's withdrawals, there will be a(n) :

• A)decrease in the cash account.
• B)increase in the owner's capital account.
• C)decrease in the owner's capital account.
• D)increase in the cash account.

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Definitions:

Enterprise

describes a large, complex business or organization that engages in commercial, industrial, or professional activities.

Minimizes Profit

A situation or strategy that unintentionally reduces the potential earnings or efficiency of a business operation.

Aggregate Planning

A process by which a company determines optimal levels of capacity, production, subcontracting, inventory, stockouts, and even pricing over a specified time horizon.

Capacity

The maximum number of goods a company can produce or the amount of work it can perform in a given time period, under current conditions.