After closing the revenue,expense,and withdrawal accounts,the capital increased by $2,000.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

All of these situations could have occurred because closing the revenue, expense, and withdrawal accounts would increase the capital account by the amount of net income, additional investments, or decrease the capital account by the amount of withdrawals.

After Closing the Revenue,expense,and Withdrawal Accounts,the Capital Increased by $2,000