What is the Increase in Owner's Equity for the year on Rocky’s Day Spa?

Prepare for the Cengage Accounting Exam 1. Use flashcards and tackle multiple choice questions with hints and detailed explanations. Be exam-ready!

Multiple Choice

What is the Increase in Owner's Equity for the year on Rocky’s Day Spa?

Explanation:
The increase in Owner's Equity for a year comes from net income plus any owner investments minus any withdrawals. If the problem shows net income of 17,455 and there are no owner investments or withdrawals reported, the increase in equity equals 17,455. The other options would require additional contributions or withdrawals or a different net income figure that isn’t indicated by the data.

The increase in Owner's Equity for a year comes from net income plus any owner investments minus any withdrawals. If the problem shows net income of 17,455 and there are no owner investments or withdrawals reported, the increase in equity equals 17,455. The other options would require additional contributions or withdrawals or a different net income figure that isn’t indicated by the data.

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