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The Net Profit of Sarah for the Year Is $40,000

Question 4

Multiple Choice

The Net profit of Sarah for the year is $40,000.The withdrawals Sarah made during the year amounted to $51,000.Which of the following statements is true of the effect of these transactions on Sarah,capital?


A) Sarah,capital account decreases by $40,000.
B) Sarah,capital account increases by $51,000.
C) Sarah,capital account decreases by $11,000.
D) Sarah,capital account increases by $40,000.

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