The Owner's Capital Account Increases with ________

question 213

Multiple Choice

The owner's capital account increases with ________.

• A) the owner's contributions of cash and other assets
• B) the owner's withdrawals of cash
• C) net loss of the business
• D) the purchase of plant assets

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Definitions:

Operating Profit

The profit earned from a firm's normal business operations, calculated before interest and taxes.

Operating Segments

Aspects of a business for which individual financial details are accessible and are consistently reviewed by the principal operating decision maker for the purposes of resource distribution and performance assessment.

Revenue Test

An assessment used in various contexts to determine if a certain level of revenue has been achieved or to evaluate the revenue-generating capability of a business.