The Year End Balance in the Capital Account Is Determined

question 113

Multiple Choice

The year end balance in the capital account is determined by:

• A)the change in cash from the beginning to the end of the year.
• B)the beginning capital balance, investments, net income or loss, and withdrawals.
• C)only investments and withdrawals.
• D)the change in total assets from the beginning to the end of the year.

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Definitions:

Financial Statement

A comprehensive report detailing a company's financial performance, position, and cash flows over a specific period.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance based on accounting principles.

Drawee

In financial terms, this is the entity upon which a cheque or draft is drawn and is responsible for paying the amount.

Financial Statement

A summarized record that shows the financial health of a business or individual, including components like balance sheets, income statements, and cash flow statements.