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:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial position, showing assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, indicating the net profit or loss.

Owner's Equity

Owner's equity represents the owner's claim to the assets of a business after all liabilities have been subtracted.