After closing the revenue, expense, and withdrawal accounts, the capital increased by $2,500. Which of the following situations could have occurred?
A) The company had a net loss.
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 after closing accounts typically results from additional investments by the owner, not from net losses or withdrawals, which would decrease capital.

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