After Closing the Revenue,expense,and Withdrawal Accounts,the Capital Increased by $2,000

question 31

Multiple Choice

After closing the revenue,expense,and withdrawal accounts,the capital increased by $2,000.Which of the following situations could have occurred?

• A)The company had a net income.
• B)The owner invested an additional amount.
• C)The owner made a withdrawal.
• D)All of these answers are correct.

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Definitions:

Output

The amount of goods or services produced by a business, industry, or country.

Profit-Maximizing Rule

A principle that firms apply to determine the level of output at which they will realize the maximum possible profits.

Short-Run Monopoly

A scenario where a single supplier dominates the market for a brief period, often due to patents, resources, or technology.

Marginal Revenue

The additional income earned by selling one more unit of a product.