The gross increases in owner's equity attributable to business activities are called
A) assets
B) liabilities
C) revenues
D) expenses

Question

Quizplus · Accepted Answer

Owners' equity increases when the business earns revenues. Revenues are the gross increases in assets or decreases in liabilities resulting from the business's typical operations. The other options, such as assets and liabilities, are not increases in owner's equity. Expenses are the costs of earning revenues, and they decrease owner's equity.

The Gross Increases in Owner's Equity Attributable to Business Activities