Capital at the beginning of the month amounted to $4,000; net income for the month amounted to $1,000; and withdrawals for personal use during the month amounted to $2,000.Capital at the end of the month is
A) $3,000.
B) $2,000.
C) $7,000.
D) $5,000.

Question

Quizplus · Accepted Answer

The capital at the end of the month is calculated by taking the beginning capital, adding net income, and subtracting withdrawals. Therefore, $4,000 (beginning capital) + $1,000 (net income) - $2,000 (withdrawals) = $3,000.

Capital at the Beginning of the Month Amounted to $4,000;