Owner's Capital at the End of the Period Is Equal

question 46

Multiple Choice

Owner's capital at the end of the period is equal to

• A) owner's capital at the beginning of the period plus net income minus liabilities.
• B) owner's capital at the beginning of the period plus net income minus drawings.
• C) net income.
• D) assets plus liabilities.

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Definitions:

Return

The profit or loss generated on an investment over a certain period, usually expressed as a percentage of the initial investment.

Portfolio Theory

A framework for building an investment portfolio that aims to maximize returns by taking a specified amount of market risk.

Markowitz

Refers to Harry Markowitz, an economist known for his pioneering work in modern portfolio theory and investment diversification.

Systematic Risk

The type of risk inherent to the entire market or an entire market segment, also known as market risk, which cannot be eliminated through diversification.