If the Owner's Equity Account Increases from the Beginning of the Year

question 88

Multiple Choice

If the owner's equity account increases from the beginning of the year to the end of the year, the best explanation for this change is

• A) profit is less than owner drawings.
• B) a loss is less than owner drawings.
• C) additional owner investments are less than a loss.
• D) profit is greater than owner drawings.

---

Definitions:

Payment Stream

A series of payments made over time, such as monthly mortgage or loan payments, or regular investment contributions.

Equivalent

Items or quantities that are equal in value, function, or meaning.

Equal Payments

Regular payments of the same amount over a specified period, typically used in installment plans or loans.

Paid Off

A term indicating that a debt or obligation has been fully settled and no amount remains due.