Which of the following is true of owner's equity?
A)Owner's Equity decreases with drawings.
B)Owner's Equity increases with purchase of assets.
C)Owner's Equity decreases with collection of revenue.
D)Owner's Equity increases with payment on account.

Question

Quizplus · Accepted Answer

Owner's Equity represents the owner's stake in the business, and it decreases when the owner withdraws funds from the business for personal use.

Which of the Following Is True of Owner's Equity