Increases in owner's equity result from revenues and owner investments while decreases result from expenses and owner withdrawals.

Question

Quizplus · Accepted Answer

Owner's equity increases with revenues and owner investments because these elements add value to the business. Conversely, it decreases with expenses and owner withdrawals, as these actions reduce the overall value of the owner's equity in the business.

Increases in Owner's Equity Result from Revenues and Owner Investments