Answer to Question #237779 in Economics for Koole

Question

The amount of capital plus comprehensive income for the year less drawings is referred to as capital amount for the business,true or false

Answer 1

Comprehensive income represents the changes to owners' equity that originate from non-owner sources and traditional income. The capital of a business is the money it has available to fund its day-to-day operations and to bankroll its expansion for the future.

So, the statement is true.