Net Worth Reconciliation

Question 0

Formula for reconciliation of net worth:

Answer 0

Ending net worth 
- 
current profits after tax
- 
Beginning net worth
\+ 
New equity distributions

Question 1

Reconciliation of net worth measures the:

Answer 1

Injection of additional owners’ equity into a business or withdrawal of cash in the form of salary, dividends, etc.

Question 2

If Equity Distributions are negative:

Answer 2

Cash was withdrawn from the business

Question 3

If equity distributions are 0:

Answer 3

Business had no withdraws or injections

Question 4

If equity distributions are positive:

Answer 4

New equity was injected into the business by owners