The Balance Sheet Item That Represents the Portion of Owners

question 22

Multiple Choice

The balance sheet item that represents the portion of owners' equity resulting from profitable operations of the business is:

• A)Accounts receivable.
• B)Cash.
• C)Capital stock.
• D)Retained earnings.

Understand the composition and importance of quick assets in financial analysis.

Grasp the concept and calculation of the cost of goods sold and its impact on a company's gross profit.

Learn about the inventory management processes including the calculation of merchandise available for sale.

Distinguish between periodic and perpetual inventory systems and their impact on inventory management.

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Definitions:

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