Which of the following items has no effect on owner's equity?
A) Land purchased
B) Revenue
C) Expense
D) Withdrawals

Question

Quizplus · Accepted Answer

Land purchased affects owner's equity because it increases the assets of the business, which is a component of owner's equity. Revenue increases owner's equity. Expenses decrease owner's equity. Withdrawals decrease owner's equity because they represent the owner taking money or assets out of the business.

Which of the Following Items Has No Effect on Owner's