If a company's Revenues are higher 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) net loss.

Name: If a company's Revenues are higher 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) net loss.
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Question

Quizplus · Accepted Answer

When revenues exceed expenses, the company earns a profit, which increases the owner's equity.

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