The Owner's Equity in a Business Amounted to $52,000 at the Beginning

question 49

Multiple Choice

The owner's equity in a business amounted to $52,000 at the beginning of the year and $100,000 at the end of the year.The owner had made no additional investments and had withdrawn $19,000 during the year.The net income for the year amounted to

• A) $81,000.
• B) $67,000.
• C) $48,000.
• D) $171,000.

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Definitions:

Economic Entity

A unit in the economy that is capable of control over resources, incurring liabilities, and engaging in business activities.

Combined Financial Statements

Financial statements that present the assets, liabilities, and operating results of two or more affiliated companies as if they were a single economic entity.

Consolidated Financial Statements

Combined financial statements of a parent company and its subsidiaries, presenting the financial position and results of operations as one entity.

Consolidated Financial Statements

Financial statements that aggregate the financials of a parent company with those of its subsidiaries.