The Profit of a Business Is $21,000

question 77

Multiple Choice

The profit of a business is $21,000.The beginning and ending capital balances were $34,000 and $50,000,respectively.No capital contributions were made by the owner during the year. Calculate the amount of owner's drawings.

• A)$15,000
• B)$12,000
• C)$5000
• D)$13,000

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Definitions:

Stock Investments Account

An account that records the purchase price and subsequent value of stock investments owned by an individual or a company.

Dividends

Money given out to shareholders by a business, often coming from the profits made by the company.

Consolidated Financial Statements

Combined financial statements of a parent company and its subsidiaries, presenting the financial results as if the group were a single entity.

Investee

A party or entity in which an investor holds an interest, often through ownership of securities.