The owner's Capital account will always have a zero balance after ...

[strangeaffliction]

The owner's Capital account will always have a zero balance after the closing entries are posted.
 a. True
   b. False
   Indicate whether the statement is true or false

Question 2

The gross profit margin is increasing for a firm. Give three reasons that could explain the increase.
 
  What will be an ideal response?

[fromAlphatoOmega22]

Answer to Question 1

False

Answer to Question 2

Three reasons that gross profit margin might be increasing are:
a, the selling price has increased without a proportional increase in cost of goods sold
b, the cost of goods sold are decreasing without a proportional increase in sales
c, cost of goods sold contains fixed costs and the volume of sales has increased

[strangeaffliction]

Thanks for the timely response, appreciate it

[kswal303]

Great answer, keep it coming