The statement of owner's equity begins with the beginning balance followed by a. adding net income less withdrawals b. adding investments less withdrawals c. adding net income plus investments d. adding investments plus net income less withdrawals

Question

Business

Shyla Payne

18 August, 08:53

The statement of owner's equity begins with the beginning balance followed by a. adding net income less withdrawals b. adding investments less withdrawals c. adding net income plus investments d. adding investments plus net income less withdrawals

+2

Answers (1)

Know the Answer?

Yahir Zhang · Answer 1

D. Adding investments plus net income less withdrawals.

Explanation:

This statement is generally used to show the owners capital at the beginning of an investment period which is seen or said to affect or changes in balance sheet at a section termed to be the equity section. It is said to reveal and let a shareholder know the additional and subtractional changes that happens/happened in the shareholders account.

In some certain business kind which ranges from a sole proprietorship type of business to the others, movement in capital occurs as a result of some elements.

Therefore it is seen that net income less withdrawals and also investment adding is been seen after an investors equity statement in the beginning of account balancing.