What Is the Result If the Amount of Net Income

question 93

Multiple Choice

What is the result if the amount of net income for the year is less than the amount of the withdrawals?

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

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Definitions:

Contractual Obligations

Legal commitments arising from contracts that parties have agreed to and are bound to fulfill.

Major Modification

A significant change or alteration to the original terms, structure, or conditions of an agreement or object.

Assignment

Shifting the possession of property, the burden of obligations, or rights from one side to another.

Consignment

An arrangement where goods are left in the possession of another party to sell, but the owner retains ownership until the goods are sold.