Asked by Sebastian Alonso on May 16, 2024
Verified
Transactions affecting owner's equity include
A) owner's investments and payment of liabilities
B) owner's investments, owner's withdrawals, earning of revenues, and incurrence of expenses
C) owner's investments, earning of revenues, incurrence of expenses, and collection of accounts receivable
D) owner's withdrawals, earning of revenues, incurrence of expenses, and purchase of supplies on account
Owner's Equity
The residual interest in the assets of a company after deducting all its liabilities, representing the ownership interest of shareholders.
Owner's Investments
Capital or assets that an owner puts into his company, enhancing the financial base of the business.
Expenses
The economic costs that a business incurs through its operations to earn revenue.
- Investigate the impact of owner's financial inputs and outputs on the enterprise's fiscal condition.
Verified Answer
MS
MaKayla SmallwoodMay 20, 2024
Final Answer :
B
Explanation :
Owner's equity is affected by owner's investments, owner's withdrawals, earning of revenues, and incurrence of expenses. Owner's investments and withdrawals directly impact the balance of owner's equity. Earning of revenues increases owner's equity, while incurrence of expenses decreases it. Therefore, option B is the best choice.
Learning Objectives
- Investigate the impact of owner's financial inputs and outputs on the enterprise's fiscal condition.
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