Asked by Lady Ann Alquizar on Mar 10, 2024
Verified
The beginning capital balance used on the Statement of Owner's Equity is obtained from:
A) the worksheet in the balance sheet credit column.
B) the worksheet in the income statement credit column.
C) the amount calculated on the statement of owner's equity.
D) the worksheet in the balance sheet debit column.
A) the worksheet in the balance sheet credit column.
B) the worksheet in the income statement credit column.
C) the amount calculated on the statement of owner's equity.
D) the worksheet in the balance sheet debit column.
Statement of Owner's Equity
A financial statement that outlines the changes in the equity of a company over a specific period, including contributions, withdrawals, and the net income or loss.
Worksheet
An accounting tool used for planning and preparing financial statements, allowing accountants to adjust and update figures through a series of adjustments.
- Illustrate the connection between capital balance adjustments and its components, namely net income, withdrawals, and investments.
Verified Answer
RV
Richard Vicary
Mar 10, 2024
Final Answer :
A
Explanation :
The beginning capital balance on the Statement of Owner's Equity is obtained from the worksheet in the balance sheet credit column, as this column reflects the owner's equity at the start of the period.
Learning Objectives
- Illustrate the connection between capital balance adjustments and its components, namely net income, withdrawals, and investments.