Sources of increases to owner's equity are
A) additional investments by owners.
B) purchases of merchandise.
C) withdrawals by the owner.
D) expenses.

Question

Quizplus · Accepted Answer

Increases to owner's equity come from sources such as additional investments made by the owner into the business. Purchases of merchandise and expenses, on the other hand, would decrease owner's equity. Withdrawals by the owner are a distribution of earnings and may also decrease owner's equity.

Sources of Increases to Owner's Equity Are