The Net Profit of Sarah for the Year Is $40,000

question 71

Multiple Choice

The Net profit of Sarah for the year is $40,000.The withdrawals Sarah made during the year amounted to $51,000.Which of the following statements is true of the effect of these transactions on Sarah,capital?

• A)Sarah,capital account decreases by $40,000.
• B)Sarah,capital account increases by $51,000.
• C)Sarah,capital account decreases by $11,000.
• D)Sarah,capital account increases by $40,000.

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Definitions:

Battery

A legal term for an act that intentionally causes harmful or offensive contact with another person's body.

Nuisance

A legal term denoting an act, condition, or thing unreasonably interfering with the use or enjoyment of land or property.

Negligence

The failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability for the damages caused.

Breach of Contract

occurs when one party in a contractual agreement fails to fulfill their obligations as outlined in the contract, allowing the other party to seek legal remedies.