If the owners' equity at the end of the accounting period is greater than the owners' equity at the beginning of the accounting period, the firm's
A)capital has increased
B)working capital has increased
C)cash has increased
D)capital has been maintained

Question

Quizplus · Accepted Answer

Owners' equity is composed of capital plus retained earnings. An increase in owners' equity means that there were gains or profits during the accounting period that were not distributed to the owner(s) as dividends. This increase in owners' equity is reflected as an increase in capital.

If the Owners' Equity at the End of the Accounting