Answer:
increase in, more, increase
Explanation:
Real business cycle theory states that the [tex]\text{macroeconomic fluctuations}[/tex] in any economy can be explained by the technological shocks and the changes in the productivity. All these changes in the technological growth affects the decisions of the firms on investment as well as workers or the labor supply.
Edward C. Prescott and Finn E. Kydland first gave the concept of real business cycle theory.
In the theory of real business cycle, the increase in consumption results from the major [tex]\text{production innovations incentivizes businesses}[/tex] to borrow more from the banks, and it causes the supply of money to increase.
The mean of a set of data is 5.07 and its standard deviation is 3.39.
Find the z-score for a value of 9.65.
Answer:
1.35
Explanation:
zscore= (x-mean)/(Standard deviation)
(9.65-5.07)/3.39= 1.35
Assume you are completing a swot analysis for CVS. Amazon's entrance into the healthcare business would fall under which part of the analysis?
Multiple choice
threats
accelerants
weakness
opportunities
strengths
SWOT is a technique for assessing an organization Strengths, Weaknesses, Opportunities, and Threat in market while competing with other organization.
CVS is an American retail corporation who specializes in sales of prescribed drugs, beauty products, cosmetic and so on.Amazon is an online retail store as well but with little affiliation with sales of drugs and other healthcare service.Now, if Amazon's enters into the healthcare business, this will definitely be a threat for CVS pharmacy as if will affect their sales because Amazon have a wide market.In conclusion, the part of the SWOT Analysis that must be performed by CVS because of entry of Amazon into the healthcare market is the Threat Analysis. The threat analysis helps an organisation to access threat which the competitors poses to its existence.
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Cocoa nibs from Nigeria last year was supplied at $9 per 10 pounds. This year the demand has increased and that same supply of Nigerian cocoa nibs is priced at $12 per 10 pounds. What will most likely happen to supply of Nigerian cocoa nibs this year?
a. There will be an increase in quantity supplied.
b. There will be a decrease in quantity supplied.
c. The supply curve will shift to the left.
Answer:
Option "a" is correct.
Explanation:
Below is the given values:
The last year supply of Cocoa nibs at $9 = 10 pounds
This year the supply of Cocoa nibs at $12 = 10 pounds
The supply and price of a commodity are directly related to each other. Thus it is given that price increases from $9 to $12. So, the producer will induce to supply more quantity when the price increases.
Therefore, Option "a" is correct.
Your grandmother has promised to give you $5,000 when you graduate from college. She is expecting you to graduate two years from now. What happens to the present value of this gift if you delay your graduation by one year and graduate three years from now?
a. remains constant
b. increases
c. decreases
d. becomes negative
e. cannot be determined from the information provided
Answer:
c
Explanation:
The Real Option Inc. is considering a new project. It believes that each year it would be able to sell 15 units at a $300,000 per-unit after-tax profit (i.e., per-unit operating cash flow) for the next five years. A $14.8 million initial investment will be required at the beginning of the project. The appropriate discount rate is 16 percent.
Required:
Calculate the base-case NPV of this project.
Answer:
NPV = $10.708 million
Explanation:
The base case NPV is that calculated by discounting the after-tax cash flow by the cost of equity based on asset beta. The base-case NPV does not consider the financing effect of the any particular finance source used to fund the project.
NPV = PV of cash inflow - Initial outlay
After-tax cash flow = 300,000×15= 4.5 million
PV of cash inflow = cash inflow × A × (1- (1+r)^(-n)/r
4.5 ×( 1- (1.16^-5)/0.16= 25.508 million
NPV = PV of cash inflow - Initial outlay
NPV = 25.508 million - 14.8 million
NPV = $10.708 million
A company started the year with $1,500 of supplies on hand. During the year the company purchased additional supplies of $800 and recorded them as increase to the supplies asset. At the end of the year the company determined that only $300 of supplies are still on hand. What is the adjusting journal entry to be made at the end of the period
Answer:
Debit : Supplies Expense $2,000
Credit : Supplies $2,000
Explanation:
The adjusting journal entry to be made at the end of the period should reflect the usage of supplies.
Supplies used = Opening Balance + Purchases - Inventory Balance
therefore,
Supplies used = $1,500 + $800 - $300
= $2,000
A Debit to Expense Account - Supplies Expense and A Credit to Asset Account - Supplies must be made to depict the usage of supplies.
The journal entry a company uses to record fully funded pension rights for its salaried employees at the end of the year is
a. debit Pension Expense; credit Unfunded Pension Liability and Cash.
b. debit Pension Expense; credit Unfunded Pension Liability.
c. debit Pension Expense; credit Cash.
d. debit Salary Expense; credit Cash.
Answer:
The answer is C.
Explanation:
The correct option to the question is C.
Debit pension expense and credit cash.
Because the pension expense account is increasing, we debit. Increase in expense goes to the debit side.
And because cash is reducing by paying out pension expense from there, we credit the cash account. Decrease in asset(like cash) goes to the credit side.
For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period.-interest rate, and n number of years EV of $1, PV of $1, EVA of $1 PVA of $1, EVAD of $1 and PVAD of $ Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar.
Present Value Annuity Amount i = n =
1. ___________ $2,600 8% 5
2. 507,866 135,000 ___ 4
3. 661,241 170,000 9% ____
4. 540,000 78,557 ___ 8
5. 230,000 _____________ 10% 4
Answer:
Following are the solution to the given question:
Explanation:
For point 1:
[tex]Annuity\ Amount= \$2,600\\\\i=8\%\\\\n=5\\\\Present\ Value=?[/tex]
Our table shows that the factor is equal at 3.99271 for 8 percent and 5 periods. In addition to this, the present value is $10,381 dollars in the annuity.
For point 2:
[tex]Present \ Value=507,866\\\\ Annuity \ Amount= 135,000\\\\ i =?\\\\n =4[/tex]
[tex]\text{Present Value of Ordinary Annuity = Annuity Amount} \times PVOA \ Factor[/tex]
[tex]507,866 = 135,000 \times PVOA \ Factor\\\\\frac{507,866}{135,000} = PVOA \ Factor\\\\3.76197 = PVOA\ Factor[/tex]
When looking at our n=4 row table, we notice that perhaps the factor of PVOA is equal to 3,56197 whenever the rate is equal to 2,5%.
For point 3:
[tex]Present\ Value=661,241\\\\ Annuity\ Amount= 170,000\\\\ i = 9\% \\\\n =?[/tex]
[tex]\text{Present Value of Ordinary Annuity = Annuity Amount} \times PVOA \ Factor[/tex]
[tex]661,241 = 170,000 \times PVOA\ Factor \\\\\frac{661,241}{170,000} = PVOA \ Factor\\\\3.88965 = PVOA \ Factor[/tex]
If you really are looking at our table in column i = 9%, we found PVOA is 3.88965 if n is 5.
For point 4:
[tex]Present\ Value= 540,000 \\\\Annuity \ Amount=78,557\\\\ i = ?\\\\n =8[/tex]
[tex]\text{Present Value of Ordinary Annuity = Annuity Amount} \times PVOA \ Factor[/tex]
[tex]540,000 = 78,557 \times PVOA\ Factor\\\\\frac{540,000}{78,557} = PVOA \ Factor\\\\6.873989 = PVOA \ Factor[/tex]
If you verify our table for n = 8 lines, the PVOA factor is approximately 6.87399 when the rate of interest is 3.5 percent.
For point 5:
[tex]Present\ Value=230,000\\\\ Annuity\ Amount=?\\\\ i =10\%\\\\ n =4[/tex]
The PVOA factor is 3.16997 when we search our table with i = 10% and n = 4.
[tex]230,000 = Annuity \ Amount \times 3.16987\\\\\frac{230,000}{3.16987} = Annuity\ Amount\\\\72,558 = Annuity\ Amount\\\\annuity\ total= \$72,558.[/tex]
Luker Corporation uses a process costing system The company had $ 172,500 of beginning Finished Goods Inventory on October 1. It transferred in $ 849,000 of units completed during the period . The ending Finished Goods Inventory balance on October 31 was $ 170,200 . The entry to account for the cost of goods sold in October is
Answer:
First calculate the Cost of Goods sold:
= Opening Finished goods inventory + Goods transferred in - Closing finished goods inventory
= 172,500 + 849,000 - 170,200
= $851,800
The entry to record this is:
Date Account Title Debit Credit
October 31 Cost of Goods Sold $851,800
Finished Goods Inventory $851,800
Which of the following tasks is not required when using a two-stage activity-based costing model?A. Determining the cost per unit of activityB. Determining how much direct labor each cost object consumesC. Identifying activitiesD. Assigning costs to activities
Answer:
Option B
Explanation:
In simple words, Activity-based budgeting (ABC) is a better way to allocate overhead expenses. The expense of each recurrence of an overlay occurrence throughout the procedure is determined during first step of allocation. The cost of every incidence is then allocated to individual things manufactured by the company inside the second stage.
Thus, from the above we can conclude that the correct option is B.
I need help with Accounting homework. I am not understanding it
Answer:
ok
Explanation:
send the home work we help you
'Economies of scale refers to Select one:
A. The notion that small firms are less bureaucratic and, therefore, more efficient than corporations
B. Public investments in highways, schools, utilities, etc.
C. The fact that large producers may be able to use more efficient technologies
D. The reallocation of labor from less productive to more productive uses.
Answer:
publich investment in highways
On 1/1, Florida Power and Light Energy bought a single piece of equipment by paying $7,000 cash. They also incurred freight charges and taxes of $224 on 1/1 and paid for these items with cash, also. The market value of this equipment is $13,000. What amount should be recorded in Florida Power and Light's Equipment Account on 1/1?
Answer:
the amount that should be recorded in Florida Power and Light's Equipment Account on 1/1 is $7,224
Explanation:
The computation of the amount that should be recorded in Florida Power and Light's Equipment Account on 1/1 is shown below:
= Purchase price of an equipment + freight charges & taxes
= $7,000 + $224
= $7,224
Hence, the amount that should be recorded in Florida Power and Light's Equipment Account on 1/1 is $7,224
how van an oligopoly cause market failure (8)
The correct answer to this open question is the following.
Although there are no options attached we can say the following.
An oligopoly can cause market failure because companies that form the oligopoly do not allow other companies to enter and compete in the market. This action limits consumers to choose from a variety of options, including quality, the best price, and service.
Often, oligopoly associates the strongest or more powerful companies in order to wipe out other minor competitors. They want to establish a dominant presence that affects prices and consumers participation.
Oligopoly practices result in inefficiency and instability in the market. That is why oligopolies are not good for the economy.
The automobile industry is mostly associated with an oligopoly.
When a market is controlled by just a few numbers of companies, but none of them is above the others, we are talking about an oligopoly. They can collude intentionally or not, to establish prizes and to not let other companies compete with them.
During May, Bergan Company incurred factory overhead costs as follows: indirect materials, $8,800; indirect labor, $6,600; utilities cost, $4,800; and factory depreciation, $9,000. Journalize the entry to record the factory overhead incurred during May.
Answer:
Dr Factory Overhead $29,200
Cr Materials 8800
Cr Wages payable 6600 Cr Utilities Payable 4800
Cr Accumulated Depreciation-Factory 9000
Explanation:
Preparation of the entry to record the factory overhead incurred during May.
Dr Factory Overhead $29,200
($8,800 + $6,600 + $4,800 + $9,000)
Cr Materials 8800
Cr Wages payable 6600 Cr Utilities Payable 4800
Cr Accumulated Depreciation-Factory 9000
(To record the factory overhead incurred during May)
Assuming purchase costs are rising, determine which of the statements below are correct regarding the cost of goods sold under FIFO, LIFO and weighted average cost flow methods.A. Companies using FIFO will report the highest gross profit and net income. B. Companies using FIFO will pay higher taxes than companies using LIFO, assuming all else
being equal. C. Weighted average cost of goods sold will be between FIFO and LIFO costs of goods sold. D. Companies using FIFO will report the smallest cost of goods sold.E. Companies using LIFO will report the smallest cost of goods sold.
Answer:
A
B
C
D
Explanation:
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold
Weighted average cost method calculates the cost of goods sold as the weighted average of cost of inventory
In periods of rising prices, later purchased goods would have a higher price. As a result, LIFO would report a lower net income while companies using FIFO would report the highest gross profit and net income.
Because of the high net income reported under FIFO, tax paid would be the highest too
Clem is married and is a skilled carpenter. Clem’s wife, Wanda, works part-time as a substitute grade school teacher. Determine the amount of Clem’s expenses that are deductible for AGI this year (if any) under the following independent circumstances:___________a) Clem is self-employed and this year he incurred $525 in expenses for tools and supplies related to his job. Since neither were covered by a qualified health plan, Wanda paid health insurance premiums of $3,600 to provide coverage for herself and Clem (not through an exchange).b) Clem and Wanda own a garage downtown that they rent to a local business for storage. This year they incurred expenses of $1,250 in utilities and $780 in depreciation.c) Clem paid self-employment tax of $15,300 (the employer portion is $7,650), and Wanda had $3,000 of Social Security taxes withheld from her pay.d) Clem paid $45 to rent a safe deposit box to store his coin collection. Clem has collected coins intermittently since he was a boy, and he expects to sell his collection when he retires.
Answer:
A. $4,125
B. $2030
C. $9650
D. $0
Explanation:
Calculation to determine the amount of Clem’s expenses that are deductible for AGI this year
A. AGI=Tools and supplies + Health insurance
AGI=$525+$3600
AGI=$4125
Therefore the amount of Clem’s expenses that are deductible for AGI this year is $4125
B. AGI=Tools and supplies +Health insurance ar
AGI=$1,250 +$780
AGI=$2030
Therefore the amount of Clem’s expenses that are deductible for AGI this year is $2030
C. Based on the information given, the EMPLOYER PORTION of the amount of $7,650 will be the EMPLOYER PORTION of the self-employment tax is deductible.
D. Based on the information given The amount of Clem’s expenses that are deductible for AGI this year is $0 reason been that The safe deposit fee is an ITEMIZED DEDUCTION .
Tỉnh nào ở Việt Nam nhiều cao su nhất
Tỉnh nào ở Việt Nam nhiều cao su nhất?
Answer:-
Tỉnh Đông Nam Bộ có nhiều cao su nhất.
Corner Store posts on its website an offer of a reward for information leading to the apprehension of a certain criminal. This offer could normally be terminated by:______.
A) a post on the website.
B) a notice in the local newspaper.
C) a sign in the brick and mortar store.
D) a sign posted in a police station.
Answer:
a sign posted in a police station ✓
Economic goals for sustainable development can be formulated ________. Group of answer choices by disentangling them from social goals only if we include environmental and social goals in the planning only if there is a complete overlap with social and environmental goals on their own terms without reference to environmental goals only if we exclude environmental goals
Answer:
only if we include environmental and social goals in the planning.
Explanation:
An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.
Hence, a region's or country's economy is largely dependent on how resources are being allocated and utilized, how many goods and services are to be produced, what should be produced, for whom they are to be produced for and how much money are to be spent by the consumers to acquire these goods and services.
Sustainable development can be defined as an idea or development model that is typically aimed at providing basic human needs such as food, fiber, textiles, etc., without compromising or jeopardizing the ability of future generations to create agricultural solutions to their own basic needs.
Generally, economic goals for sustainable development and growth of a country can be formulated only if environmental and social goals are included in the planning.
Run-of-the-Mills provides your marketing firm with the following data: When the price of guppy gummies decreases by 5%, the quantity of frizzles sold increases by 4% and the quantity of mookies sold decreases by 6%. Your job is to use the cross-price elasticity between guppy gummies and the other goods to determine which goods your marketing firm should advertise together.
Answer:
guppy gummies and frizzles are complementary goods and should be advertised together
Explanation:
Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.
If cross price elasticity of demand is positive, it means that the goods are substitute goods.
Substitute goods are goods that can be used in place of another good.
When the price of gummies decreased, the demand for mookies decreased. these goods are substitutes and should not be advertised together
If the cross-price elasticity is negative, it means that the goods are complementary goods.
Complementary goods are goods that are consumed together
When the price of gummies decreased, the demand for frizzles increased. the cross price elasticity would be negative. thus they are complements and should be advertised together.
According to the growth accounting studies, if you lived in a country where illiteracy was high and 40% of the children left school early and did not complete their education what would probably be the results for that country?
a. Average income in the country will see significant increases.
b. There would be both a human and economic loss.
c. The economic status of the country would continue to rise.
d. More technological breakthroughs would happen in this country.
Answer:
b. There would be both a human and economic loss.
Explanation:
In the case when the illiteracy was more and 40% of the children left the school so early that they didnt complete their education so here the result should be that there should be 2 losses i.e. human and economic loss as the children does not have any kind of knowledge so they would not get the job so easily
Therefore the option b is correct
The petty cash fund of the Brooks Agency is established at $250. At the end of the current period, the fund contained $172 and had the following receipts: entertainment, $41; postage, $25; and printing, $12.
Prepare journal entries to record (a) establishment of the fund and (b) reimbursement of the fund at the end of the current period.Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry.
a. Fund amount is being reduced.b. Fund amount is being increased.c. Fund is being eliminatedd. Fund is being established.
Answer:
a.
Date Account Title Debit Credit
XX-XX-XX Petty Cash $250
Cash $250
b.
Date Account Title Debit Credit
XX-XX-XX Entertainment expense $41
Postage $25
Printing $12
Petty Cash $ 78
Date Account Title Debit Credit
XX-XX-XX Petty Cash $78
Cash $78
2. Reasons why a Petty Cash account would be credited:
a. Fund amount is being reduced.
c. Fund is being eliminated
When the fund is being reduced by expenses, it is credited as shown above.
When the fund is to be eliminated, it will be credited so as to remove all the money in it.
Suppose a wealthy French citizen buys $2 million worth of stock issued by an American corporation. The American firm uses the proceeds for a factory expansion.
This is an example of foreign _____ investment in the United States.
Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries?
(i) Provide tax breaks and patents for firms that pursue research and development in health and sciences.
(ii) Protect property rights and enforce contracts.
(iii) Give families cash payments on the condition that their children show up for school and medical exams.
(iv) Pursue inward-oriented policies.
Which of the following are possible outcomes of rapid population growth?
(i) A reduction in human capital per worker
(ii) A reduction in capital per worker
(iii) An increase in technological knowledge
(iv) All of the above
Answer: 1. Portfolio
2. • Protecting property rights and enforce contracts.
• Providing tax breaks and patents for firms that pursue research and development in health and sciences.
3. All of the above
Explanation:
1. Since the wealthy French citizen buys $2 million worth of stock issued by an American corporation and the American firm uses the proceeds for a factory expansion, then this is considered to be an example of foreign portfolio investment in the United States.
2. The policies that are consistent with the goal of increasing productivity and growth in developing countries include:
• Protecting property rights and enforce contracts.
• Providing tax breaks and patents for firms that pursue research and development in health and sciences.
3. The possible outcomes of rapid population growth include a reduction in the human capital per worker, a reduction in capital per worker and an increase in technological knowledge. Therefore, the answer is all of the above.
The firm utilizes foreign proceeds for the expansion of its factory. Thus, this is an example of foreign portfolio investment in the United States.
What is foreign portfolio investment?The purchase of foreign securities, such as stocks and bonds, on an exchange is known as foreign portfolio investment.
For the first case, the American firm uses foreign portfolio investment for the expansion of its factory.
For the second case, policies that are in line with the goal of enhancing productivity and growth in developing countries include the following:
Provide tax breaks and patents for firms that pursue research and development in health and sciences.Protect property rights and enforce contracts.For the third case, the outcomes of rapid population growth are:
A reduction in human capital per workerA reduction in capital per worker.An increase in technological knowledge.Therefore, the correct answer for the first case is Foreign portfolio investment, for the second case Option (i), (ii), and for the third case Option (iv) All of the above is the correct answer.
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Based on your understanding of the involvement of investment banks in an IPO, complete the following statements. If the investment bank guarantees the sale of the securities, the issue is___________ . The investment bank must pay the issuing firm within ________days of the official start of the offering. If more than one stock offering investment bank is involved in the IPO, the deal is referred to as ___________stock offering.
After the SEC approves the registration statement for the IPO, the biggest responsibility for the issuing company and the investment bank becomes ensuring that the determined number of securities is sold and the firm is able to raise the intended amount. The IPO team-including the investment bankers, senior management team, lawyers, and investor relations team-conducts various activities. Which of the following statements are true about the activities involved in the IPO process?
a. The investment banker estimates the potential demand for the securities by recording the number of shares that each investor is willing to buy. This is called book-building.
b. The IPO team goes on a roadshow, making presentations to institutional investors selected by the underwriter.
c. If investors are willing to purchase more shares than are available, the IPO is considered to be oversubscribed.
d. During the roadshow, the IPO team can divulge additional information to institutional investors that is not given in the registration statement to lure the institutional investors.
Answer:
a. If the investment bank guarantees the sale of the securities, the issue is underwritten. The investment bank must pay the issuing firm within 4 days of the official start of the offering. If more than one stock offering investment bank is involved in the IPO, the deal is referred to as underwriter syndicate stock offering.
b. True Statements.
a. The investment banker estimates the potential demand for the securities by recording the number of shares that each investor is willing to buy. This is called book-building.
b. The IPO team goes on a roadshow, making presentations to institutional investors selected by the underwriter.
c. If investors are willing to purchase more shares than are available, the IPO is considered to be oversubscribed.
Book building is a process that allows investment banks to estimate the potential demand for the shares by finding out the number of shares that investors are willing to buy.
They do this after going on a roadshow where they essentially advertise the IPO to institutional investors. If these investors are willing to buy more shares that is available, they are oversubscribing.
The Molding Department of Boswell Company has the following production data: beginning work process 40,000 units (60% complete), started into production 730,000 units, completed and transferred out 690,000 units, and ending work in process 80,000 units (40% complete). Assuming materials are entered at the beginning of the process equivalent units materials are:____. a. 500,000.b. 425,000.c. 450,000.d. 525,000.The Molding Department of Boswell Company has the following production data beginning work process 40,000 units (60% complete) started into production 730,000 units, completed and transferred out 690,000 units, and ending work in process 80,000 units (40% complete). Assuming materials are entered at the beginning of the process equivalent units for materials are:____.a. 770,000. b. 650.000. c. 690.000. d. 810.000.
Answer: 770,000
Explanation:
Assuming materials are entered at the beginning of the process, the equivalent units materials will be:
Beginning work process = 40,000 units
Started into production = 730,000 units
Then equivalent units materials will be:
= 40000 + 730000
= 770000
Haier has achieved great success in becoming a global leader in the appliance industry and is doing so with these beneficial strategies.
a. True
b. False
Answer:
a. True
Explanation:
It is correct to say that a company like Haier, which has become a global leader in the household appliance industry segment, has developed a beneficial strategy for success, as entering a global market can be a great challenge for companies, as it requires business, product and services of the company to the local market that includes cultural and social differentiation in the preferences for products and services. So it is correct to say that the company has adopted a beneficial global strategy that gives it significant advantages such as market positioning, cost reduction, greater competitive capacity, greater brand value, increased profitability, etc.
Emily and Betsey are economists. Emily thinks that the wealthiest 10 percent of the U.S. population should be taxed a rate higher than the rest of society because they can better afford it. Betsey thinks that everyone should be taxed at the same rate because that is the fairest scenario and the wealthy should not be penalized for their success. In this example, Emily and Betsey:______
Answer: b. have different normative views about tax policy.
Explanation:
Economists follow different theories and principles on how the world should be so most times they will disagree with each other on key issues such as taxation and government intervention in markets.
Emily and Betsy both believe in different taxation policies which means that they have different views on how people should be taxed in an economy with one of them believing in a proportional tax regime (Betsey) and the other believing in a progressive tax regime (Emily).
a mixed economy combines features of other economic system by
Answer:
allowing some government regulation of a mostly free market economy
Explanation:
You took ACC111 where the Owner's Equity section consisted of Capital and Owner's Withdrawals. Now that you've seen the corporate structure of the Owner's Equity section, how do the individual items in the Sole Proprietor's Equity section translate to the Corporate Equity section? For example, Revenues are closed out into Capital for Sole Proprietor, Where does it go for Corporate?
Answer:
Revenues are closed out to Equity (Retained Earnings) for Corporate.
Explanation:
Actually, for both Sole Proprietor and Corporate, the account that is closed out to Capital or Equity is the difference between the Revenue and the Expenses for the accounting period. This is more specifically referred to as Net Income. This is the bottom-line profit, which is available for distribution to the owners of the entity in the form of capital withdrawals for Sole Proprietorships and dividends for Corporate entities.
