A North Lauderdale startup begins with owner capital of $150,000 and an approved startup draw of $24,000. What capital remains in the business?
Correct Answer
A) $126,000
Remaining capital equals contributed capital less the approved draw.
Why This Is the Correct Answer
Remaining capital equals contributed capital less the approved draw.
Why the Other Options Are Wrong
Option B: $174,000 license setup record
$174,000 license setup record is above the supported result for startup capital; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $24,000 business audit note
$24,000 business audit note is below the supported result for startup capital; it likely uses the wrong base, period, or account bucket.
Option D: $138,000 insurance evidence file
$138,000 insurance evidence file is above the supported result for startup capital; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Startup Capital drawer for Bookkeeper Records: label remaining before counting dollars.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Builder's Guide to Accounting, Owner capital and draws; verify the startup duty, registration, or financial setup before answering.
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