Accounts that affect owner's equity are
A) assets,capital,and revenue.
B) capital,liabilities,and expenses.
C) expenses,capital,and revenue.
D) drawing,assets,and liabilities.

Question

Quizplus · Accepted Answer

Owner's equity represents the assets of the business that are owned by the owner. Therefore, any accounts that impact owner's equity must be related to the owner's investment in the business or the profits or losses generated by the business. Expenses reduce owner's equity, while revenue increases it. Capital is the owner's investment in the business, and is also an account that affects owner's equity. Therefore, the correct answer is C, which includes expenses, capital, and revenue.

Accounts That Affect Owner's Equity Are