The Net Income of Sarah for the Year Is $25,000

question 70

Multiple Choice

The Net Income of Sarah for the year is $25,000. The withdrawals Sarah made during the year amounted to $30,000. Which of the following statements is true of effect of these transactions on Sarah, Capital?

• A)Sarah, Capital account decreases by $25,000.
• B)Sarah, Capital account decreases by $5,000.
• C)Sarah, Capital account increases by $30,000.
• D)Sarah, Capital account increases by $25,000.

Describe the roles of regulatory bodies in accounting principles development.

Differentiate between net income and cash flow from operating activities.

Calculate net cash flow from operating activities.

Explain the accounting communication process and the roles of its participants.

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Definitions:

Executive Orders

Directives issued by the President of the United States that manage operations of the federal government.

Article II

Often refers to a specific section of a legal document or constitution that outlines certain powers and structures, such as the executive branch in the U.S. Constitution.

Business Law

The body of law that governs the rights, relations, and conduct of persons, companies, organizations, and businesses.

Enforceable Rules

Regulations or directives that are legally binding and can be enforced by law.