The owner's equity will be reduced by all of the following accounts except:
A) Revenues
B) Expenses
C) Drawing account
D) All are true.

Question

Quizplus · Accepted Answer

Owner's equity is calculated by subtracting liabilities from assets. Revenues increase owner's equity, while expenses and withdrawals (recorded in the drawing account) decrease it. Therefore, options B and C are true. Option A is incorrect, as revenues increase owner's equity rather than reduce it.

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