The Ending Balance of Owner's Capital Is Calculated As

question 71

Multiple Choice

The ending balance of owner's capital is calculated as:

• A) Owner's capital account balance plus net income minus the withdrawals account balance.
• B) Owner's capital account balance minus net loss plus the withdrawals account balance.
• C) Net income minus the withdrawals account balance.
• D) Assets plus liabilities.
• E) None of these answers is correct.

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Definitions:

Downward-Sloping

Describes a curve or line on a graph that shows a decrease in a variable (e.g., price) leading to an increase in another variable (e.g., quantity demanded), typically observed in demand curves.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward sloping, indicating an inverse relationship between price and quantity demanded.

Output Axis

In graphing, particularly in economics, this refers to the axis on which the quantity produced or supplied is measured.

Economic Power

The capacity of an entity, such as a company or country, to influence economic outcomes within its environment for its own benefit.