In a proprietorship, owner's equity increases when:
A) the owner withdraws money for personal use.
B) money is borrowed from the bank.
C) cash is collected from a customer who had previously been billed for services.
D) a service is provided to a customer on account.

Question

Quizplus · Accepted Answer

Owner's equity increases when a service is provided to a customer on account because it represents revenue earned, which increases the owner's equity through increased net income.

In a Proprietorship, Owner's Equity Increases When