Which of the Following Will Not Cause a Change in the Owners

question 89

Multiple Choice

Which of the following will not cause a change in the owners' equity of a business?

• A)Purchase of land with cash.
• B)Withdrawal of cash by the owner.
• C)Sale of land at a profit.
• D)Losses from unprofitable operations.

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Definitions:

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and entitling holders to a share of the company's profits via dividends.

Dividend

A share of profits distributed by a company to its shareholders, typically in the form of cash or additional stock.

Net Assets

The difference between an entity's total assets and total liabilities, representing the owners' equity in a company.

Year-end Adjustment

Adjustments made to financial statements at the close of a fiscal year to account for all financial activities and ensure accuracy in reporting.