The owner's claim over the assets of the business.Select one:a.Statement of Financial Positionb.Capitalc.Expensesd.Revenue
Question
The owner's claim over the assets of the business.
Select one:
- a. Statement of Financial Position
- b. Capital
- c. Expenses
- d. Revenue
Solution
To determine the correct answer to the given question about the owner's claim over the assets of the business, we need to analyze the options provided:
-
Statement of Financial Position: This is a financial statement that summarizes a company's assets, liabilities, and equity at a specific point in time. It reflects the financial health of a business but does not directly denote the owner's claim.
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Capital: This refers to the financial assets or resources that the owner has invested in the business. It represents the owner's equity and claim over the assets after all liabilities have been settled.
-
Expenses: These are costs incurred in the operation of a business. While they are deducted from revenue to determine profit, they do not pertain to ownership claims.
-
Revenue: This is the income generated from normal business operations. Like expenses, it does not reflect ownership claims on assets.
After considering the definitions, the best answer is:
Final Answer
b. Capital
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