After Closing Entries Are Posted the Balance in the Owner's

question 194

Multiple Choice

After closing entries are posted the balance in the owner's capital account in the ledger will be equal to

• A) the beginning owner's capital reported on the owner's equity statement.
• B) the amount of the owner's capital reported on the balance sheet.
• C) zero.
• D) the net income for the period.

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Definitions:

Repurchase

A Repurchase is the act of buying back previously sold assets or securities by the company or issuer.

Market Value

The current price at which an asset or service can be bought or sold, reflecting its perceived worth in the open market.

Common Shares

A type of equity security that represents ownership in a corporation, giving the holder voting rights and a share in the company's profits via dividends.

Authorized

Officially approved or sanctioned, often referring to a specified amount of capital stock a corporation is legally permitted to issue.