What Is the Net Result If the Amount of Net

question 63

Multiple Choice

What is the net result if the amount of net income for the year is less than the amount of the owner's withdrawals?

• A) Owner, Capital increases
• B) Cash balance decreases
• C) Cash balance increases
• D) Owner, Capital decreases

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Definitions:

Bonds Before Maturity

The buying or selling of bonds in the financial markets before they have reached their specified maturity date.

Extraordinary Item

A term used in accounting to describe events and transactions that are both unusual and infrequent in nature, significantly affecting a company's financial position.

Loss On Bond Redemption

The financial loss incurred when bonds are redeemed before their maturity date at a higher value than their purchase price.

Straight-Line Amortization

A technique for distributing the cost of an asset uniformly throughout its period of use.