The Increase in Owners' Equity for a Given Period Is

question 114

Multiple Choice

The increase in owners' equity for a given period is equal to

• A) positive net cash flow minus dividends.
• B) net income minus dividends.
• C) sales minus dividends.
• D) gross profit minus distributions to shareholders.

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Definitions:

Consumption

Households' utilization of goods and services.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Endowment

In economics, an endowment is the total range of assets, including both physical goods and intangible elements like labor skills, that an individual or entity owns.