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

---

Definitions:

Physical World

The material universe that exists independently of our perceptions, consisting of matter and energy and governed by physical laws.

Bertrand Russell

A British philosopher, logician, mathematician, historian, writer, social critic, and Nobel laureate, known for his work in mathematical logic and his advocacy for nuclear disarmament and social reform.

Reality

The state of things as they actually exist, as opposed to an idealistic or notional idea of them.

Appearances

The way in which persons or things seem to the eye or mind; the outward aspect or impression.