If a company's revenues are lower than its expenses, it will cause
A) an increase in owner's equity.
B) a decrease in owner's equity.
C) an increase in assets.
D) no effect on owner's equity.

Question

Quizplus · Accepted Answer

If a company's revenues are lower than its expenses, it means that it has incurred a net loss. This decreases the amount of owner's equity in the business.

If a Company's Revenues Are Lower Than Its Expenses, It