An Owner Invests $20 000 in Her New Business by Depositing

question 56

Multiple Choice

An owner invests $20 000 in her new business by depositing the cash in the business bank account.Which account is credited?

• A)Accounts receivable
• B)Accounts payable
• C)Cash
• D)Capital

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Definitions:

Merchandise Sold

The total goods or inventory that have been sold to customers within a specific period, generating revenue for the business.

Inadvertently Overstated

When financial figures are unintentionally reported higher than their actual values.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owner's claim on the business assets.