What Is the Result If the Amount of Profit for the Year

question 38

Multiple Choice

What is the result if the amount of profit for the year is less than the amount of the drawings?

• A)The amount in the Cash account increases.
• B)The amount in the Cash account decreases.
• C)The Capital account decreases.
• D)The Capital account increases.

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Definitions:

Social Identity Theory

A psychological theory that examines how a person’s sense of who they are is based on their group membership(s).

Group Prototype

An ideal or standard model that represents the typical qualities or characteristics of members within a group.

Socially Networked

The state or condition of being interconnected and engaged with others through online social platforms.

Change Agent

An individual or entity that acts as a catalyst for change, facilitating or implementing changes in organizations or societies.