The Owners' Contribution of Capital to Open the Business Bank

question 5

Multiple Choice

The owners' contribution of capital to open the business bank account will result in which of the following?

• A)An increase in both revenue and equity
• B)An increase in revenue and a decrease in equity
• C)An increase in cash and a decrease in equity
• D)An increase in cash and an increase in equity

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Definitions:

Identifiable Net Assets

Assets of a company that can be separated and valued from the entity during an acquisition process.

Consolidated Statement

Financial reports that aggregate the financial results of a parent company and its subsidiaries into a single document.

Not-For-Profit Entity

An organization that operates for purposes other than making a profit, such as charitable, educational, or cultural purposes, and reinvests any excess revenues in its mission.

Donor's Gift

A voluntary conveyance of money, goods, or services from an individual or organization, without the expectation of direct compensation but often with philanthropic intentions.