8. If the amount of the profit for the current period is less than the amount of the owner's withdrawals, there will be a/an (1 Point) decrease in the cash account. decrease in the owner's Capital account. increase in liabilities on the balance sheet. increase in the owner's Capital account.

8. If the amount of the profit for the current period is less than the amount of the owner's withdrawals, there will be a/an (1 Point) decrease in the cash account. decrease in the owner's Capital account. increase in liabilities on the balance sheet. increase in the owner's Capital account.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

a profit has oCcurred.
no conclusion can be drawn until the closing entries have been made.
28. If the amount of the profit for the current period is less than the amount of the
owner's withdrawals, there will be a/an
(1Point)
decrease in the cash account.
decrease in the owners Capital account,
increase in liabilities on the balance sheet.
increase in the owner's Capital accocunt,
29. The term " freight prepaid or collect will
ietate who shoulders the transportation
OO O O

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