If the Adjusting Entry to Transfer Net Income/owner's Equity into the Owner's

question 46

Multiple Choice

If the adjusting entry to transfer net income/owner's equity into the owner's capital account is made prior to the end of the year, the Balance Sheet shows _______.

• A)Owner's Equity
• B)Net Income
• C)both Net Income and Owner's Equity
• D)none of the above because the income/earnings has been transferred into capital

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Definitions:

Piagetian

Relates to the theories and works of Swiss psychologist Jean Piaget, who studied the cognitive development of children.

Psychometric

Referring to the measurement of mental functions, abilities, and processes.

Information-Processing

A model or approach that describes how the human mind perceives, analyzes, stores, and retrieves information.

Cognitive Functioning

The mental processes that involve the ability to think, perceive, reason, remember, and problem-solve.