A) Income
B) Owner’s capital
C) Assets
D) All of the above
✅ ANSWER: B
Profit is a part of Owner’s capital. When a company generates a profit and retains a portion of that profit after subtracting all of its costs, the owner’s equity generally rises.
Profit is a part of Owner’s capital. When a company generates a profit and retains a portion of that profit after subtracting all of its costs, the owner’s equity generally rises.