Owner's equity can be increased through
A) withdrawals by the owner.
B) investments by the owner.
C) expenses exceeding revenues.
D) purchases of assets for cash.

Question

Quizplus · Accepted Answer

Owner's equity can be increased through investments by the owner, such as injecting additional capital into the business, which increases the assets available to the business and thus the owner's equity. Withdrawals by the owner decrease owner's equity. Expenses exceeding revenues decrease owner's equity. Purchases of assets for cash do not directly impact owner's equity.

Owner's Equity Can Be Increased Through