Sources of increases to owner's equity, in a proprietorship, are
A) additional investments by owners.
B) purchases of merchandise.
C) withdrawals by the owner.
D) sale of share capital.

Question

Quizplus · Accepted Answer

Additional investments by owners increase the owner's equity in a proprietorship. Purchases of merchandise and withdrawals by the owner decrease equity, and sale of share capital is not applicable to a proprietorship, which does not issue shares.

Sources of Increases to Owner's Equity, in a Proprietorship, Are