Equity is decreased by:
A) liabilities.
B) expenses.
C) income.
D) assets.

Name: Equity is decreased by: A) liabilities. B) expenses. C) income. D) assets.
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Question

Quizplus · Accepted Answer

Expenses decrease equity as they represent a reduction in the company's assets or an increase in its liabilities. The other choices are incorrect as liabilities and assets can both increase or decrease equity depending on their nature and income generally increases equity.

Equity Is Decreased By