A net loss
A)decreases the Cash account.
B)increases the owner's Capital account.
C)decreases the owner's Capital account.
D)decreases the owner's Drawing account.
E)increases the owner's Drawing account.

Question

Quizplus · Accepted Answer

A net loss decreases the owner's Capital account because it represents a decrease in the amount of the owner's equity in the business. The Cash account may or may not be affected depending on the specific circumstances of the loss. The owner's Drawing account is not affected by the net loss.

A Net Loss