The statement of owner's equity shows the changes in Owner's capital.Which one of these statements is TRUE?

Question

Quizplus · Accepted Answer

According to the statement of owner's equity, decreases in Owner's equity result from net losses. Net losses represent a decrease in the business's assets or an increase in liabilities, and therefore result in a decrease in the owner's equity. Conversely, net income and revenues earned generally result in an increase in Owner's equity, while owner investments can result in either an increase or a decrease in Owner's equity depending on the circumstances.

The Statement of Owner's Equity Shows the Changes in Owner's