After closing the revenue, expense, and withdrawal accounts, the capital increased by $3,000. Which of the following situations could have occurred?
A) The company had a net income.
B) The owner invested an additional amount.
C) The owner made a withdrawal.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

An increase in capital can result from a net income, additional owner investment, or both, despite withdrawals. Each option can contribute to an increase in capital.

After Closing the Revenue, Expense, and Withdrawal Accounts, the Capital