Owner's equity will be reduced by all of the following except
A) revenues
B) expenses
C) withdrawals
D) All of these choices

Question

Quizplus · Accepted Answer

Owner's equity will be reduced by expenses and withdrawals because they represent outflows of resources. Revenues, on the other hand, increase owner's equity by representing inflows of resources. Therefore, the only option that does not reduce owner's equity is A) revenues.

Owner's Equity Will Be Reduced by All of the Following