Which of the Following Accounts Is Not Included in the Calculation

question 138

Multiple Choice

Which of the following accounts is not included in the calculation of a company's ending owner's equity?

• A) Cash.
• B) Revenues.
• C) Expenses.
• D) Owner investments.
• E) Withdrawals.

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Definitions:

Variable Cost

Variable costs are expenses that vary directly with the level of production or sales volume.

Target Profit

The predetermined amount of income that a company aims to achieve in a specific period.

Fixed Component

The part of total costs in a business that remains constant regardless of the level of production or business activity.

Least-Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the vertical distances of the points from the line.