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Which of the Following Statements Is Correct

Question 3

Multiple Choice

Which of the following statements is correct?


A) Owner's capital will remain constant if he only withdraws his net profit each year and does not introduce any new capital
B) Owner's capital will remain constant if he only withdraws his net profit each year, and also introduces new capital
C) Owner's capital will increase if his drawings are higher than his net profit and he does not introduce any new capital
D) Owners capital will decrease if his net profit is greater than his drawings and he does not introduce any new capital

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