Decreases in owners' equity are caused by:
A) Purchases of assets and payment of liabilities.
B) Purchases of assets and incurrence of liabilities.
C) Payment of liabilities and unprofitable operations.
D) Distributions of assets to the owner and unprofitable operations.

Question

Quizplus · Accepted Answer

Decreases in owners' equity occur when assets are distributed to owners (such as dividends) and when the business incurs losses from unprofitable operations.

Decreases in Owners' Equity Are Caused By