If the Owner's Equity account increases during the year, most likely
A) The company was promised a large and profitable contract for next year.
B) Equipment purchases were higher than average for the year.
C) Payment of liabilities was lower than average for the year.
D) The owner made additional investment during the year.

Question

Quizplus · Accepted Answer

The owner's equity account increases when the owner makes additional investments into the business, so choice D is the correct answer. Choices A, B, and C do not necessarily lead to an increase in owner's equity.

If the Owner's Equity Account Increases During the Year, Most