Asked by bryan chavez on May 02, 2024

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________ is the owner's initial investment in the business plus profits that were not paid out to owners over time in the form of cash dividends.

A) Owners' equity
B) Asset
C) Liability
D) Cash

Owners' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the ownership's stake.

Cash Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Initial Investment

The amount of money used to start a venture, purchase assets, or establish the financial foundation of a business.

  • Differentiate between types of assets, liabilities, and owner's equity.
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ZK
Zybrea KnightMay 07, 2024
Final Answer :
A
Explanation :
Owners' equity represents the owner's initial investment in the business plus any retained earnings, which are profits not distributed as dividends.