Both owner investments and revenues increase total assets and owner's equity.

Name: Both owner investments and revenues increase total assets and owner's equity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Both owner investments and revenues are sources of funds that increase total assets and owner's equity. Owner investments increase owner's equity directly, while revenues increase owner's equity indirectly by increasing net income, which in turn increases retained earnings (a component of owner's equity).

Both Owner Investments and Revenues Increase Total Assets and Owner's