An Entity's Equity Consists of Two Accounts,Amy Jones,Capital,and Mindy Lenz,Capital

question 93

Multiple Choice

An entity's equity consists of two accounts,Amy Jones,Capital,and Mindy Lenz,Capital.This indicates the entity is a:

• A)proprietorship.
• B)corporation.
• C)not-for-profit.
• D)partnership.

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Definitions:

Operating Activities

Activities that relate directly to the running of a business for profit, including production, sales, and distribution.

Net Income

The amount of profit left after all operating expenses, taxes, and interest are deducted from total revenue.

Indirect Method

In cash flow statement preparation, refers to starting with net income and adjusting for non-cash transactions to calculate operating cash flow.

Accounts Payable

Liabilities of a business that represent amounts owed to creditors for goods and services received but not yet paid for.