Owner's investments are increases in equity from a company's earnings activities.

Name: Owner's investments are increases in equity from a company's earnings activities.
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Question

Quizplus · Accepted Answer

Owner's investments are actually investments made by the owner into the company from their personal funds, not increases in equity from the company's earnings activities. Increases in equity from the company's earnings activities are generally referred to as retained earnings or profits.

Owner's Investments Are Increases in Equity from a Company's Earnings