Asked by
Melissa Hernandez
on Nov 14, 2024Verified
Owner's equity is increased by
A) drawings.
B) revenues.
C) expenses.
D) liabilities.
Owner's Equity
The residual interest in the assets of a business after deducting liabilities, representing the owner's claim on the company's resources.
Revenues
The total income generated by a company from its business activities, typically from the sale of goods or services before any expenses are subtracted.
Expenses
Outflows of resources or incurrences of liabilities that a company undergoes as part of its operations to generate revenue.
- Gain an understanding of the relationship between owner's equity and the factors of revenues, expenses, and withdrawals.
Verified Answer
VM
Learning Objectives
- Gain an understanding of the relationship between owner's equity and the factors of revenues, expenses, and withdrawals.