Practice Quiz

Case Interview Prep

Category - Accounting

Start a Study Session Sign up for Question of the Day
In the statement of owner’s equity, owner’s equity or capital is calculated using:
  1. Gross income
  2. The positive or negative cash flow figure from the statement of cash flows
  3. Assets
  4. Total income from operating activities
  5. Net income
Explanation
Answer - E - Owner’s equity is calculated using net income when preparing the statement of owner’s equity.

Key Takeaway: The statement of owner’s equity includes beginning capital, investments made into the business, net income, and owner’s withdrawals to determine the ending owner’s equity.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz