Which of the following statements regarding owner's capital is not valid?
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Which of the following statements regarding owner's capital is not valid?
a. It is increased by investments to the business by the owner.
b. It is increased by income earned by the business.
c. It is increased by distributions to the owners (drawings by owners).
d. It is decreased by expenses incurred by the busines
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- Describe a business transaction that will do the following: a. Increase an asset and increase a liability b. Decrease an asset and decrease a liability c. Decrease an asset and increase an expense d. Increase an asset and increase owners equity e. Increase an asset and decrease an asset f. Increase an asset and increase revenuerevenue may be defined as : a- increase in assets from all sources b- the amount of capital invested by the owners of a business c- the reduction of liabilities previously owned d- the increase in equity other than contributions from equity participantsWhich statement is incorrect? a. Under the transactions approach, net income is computed as the excess of income over expenses b. Under the capital maintenance approach, net income is computed as the excess of ending capital over beginning capital, excluding the effect of investments and withdrawals by owners. c. Unusual and infrequent items of expenses should be presented in in the income statement as a component of income from continuing operation. d. The single statement of comprehensive income shows a detailed presentation of all income and expenses, regardless of whether these income and expenses are recognized or not in the profit or loss. e. None of the above Statement 1: In the statement of changes in equity, the effect of the correction of a prior period error is presented separately for each component of equity. Statement 2: Preference share dividend appear under the retained earnings section of the statement of changes in equity. a. True, True b. False,…
- Which of the following best represents operating income? Seleccione una: a. Income after financing activities b. Earnings before interest and taxes c. Income from discontinued operations d. Income from capital gainsWhich statement is incorrect? * Under the transactions approach, net income is computed as the excess of income over expenses Under the capital maintenance approach, net income is computed as the excess of ending capital over beginning capital, excluding the effect of investments and withdrawals by owners. Unusual and infrequent items of expenses should be presented in in the income statement as a component of income from continuing operation. The single statement of comprehensive income shows a detailed presentation of all income and expenses, regardless of whether these income and expenses are recognized or not in the profit or loss. None of the aboveThe statement of changes in owners equity summarizes the effects on the capital account of the various business transactions that occurred during the period. True or false?
- In which of the following cases will the business have Net profit ? a. Expenses are less than revenue b. Expenses are greater than income c. Expenses are equal to income d. Liabilities are greater than incomeA. Identify the nature of each account using the letter A for assets, L for liabilities, SE for shareholders’ equity, R for revenue, E for expenses, and NA for not applicable. B. Calculate net income for the period. C. How much has been earned by the company’s operations but not distributed to shareholders? D. What is the total investment by shareholders? E. How much do customers owe the company?Is the company’s net income the amount stated by the owner? Is the company a good investment? Why or why not? Cite at least two reasons for your answer.
- What business record shows the results of the proprietorship’s borrowing assets from the business, usually anticipation of profits? A. Proprietor’s Withdrawals B. Proprietor’s Investment C. Proprietor’s Capital D. Proprietor’s AssetsThe owners' claims to the assets of the business are called ________. A.equity B.expenses C.debt D.return on assets1. Which statement is incorrect? Under the transactions approach, net income is computed as the excess of income over expenses Under the capital maintenance approach, net income is computed as the excess of ending capital over beginning capital, excluding the effect of investments and withdrawals by owners. Unusual and infrequent items of expenses should be presented in in the income statement as a component of income from continuing operation. The single statement of comprehensive income shows a detailed presentation of all income and expenses, regardless of whether these income and expenses are recognized or not in the profit or loss. None of the above 2. S1: In the statement of changes in equity, the effect of the correction of a prior period error is presented separately for each component of equity. S2: Preference share dividend appear under the retained earnings section of the statement of changes in equity. True, True False, False True, False False True 3. The…