John Smith Is the Owner of Alpha Technologies Ltd

question 21

True/False

John Smith is the owner of Alpha Technologies Ltd.The beginning balance in Smith,capital was $90 000.The revenues and expenses were $70 000 and $50 000,respectively.If no drawings were made by Smith during the year,the ending balance in Smith,Capital must be $100 000.

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Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life, often used for depreciation calculations.

Total Operating Income

The profit achieved from a company's core business operations, excluding deductions of taxes and interest.

Net Cash Inflows

The amount by which the cash inflow from operations exceeds its cash outflow, usually measured within a specific period.

Net Cash Inflow

The excess of cash receipts over cash disbursements during a certain period, reflecting the liquidity generated from operations.