Asked by Lourdes Orellana on May 10, 2024
Verified
Revenue, Expenses, and withdrawals are subdivisions of:
A) Assets.
B) Liabilities.
C) Owner's Equity.
D) All of these answers are correct.
Owner's Equity
The residual interest in the assets of the entity after deducting liabilities, representing the owners' claim on the business assets.
Withdrawals
Funds taken out from a business by its owner(s) for personal use, which reduce the capital accounts in the company’s equity section.
Revenue
The global earnings a company obtains from its key operational trades, especially in goods or services sales.
- Analyze the consequences of several transactions on Assets, Liabilities, and Owner's Equity.
Verified Answer
BE
Bakhita El-Sandali
May 13, 2024
Final Answer :
C
Explanation :
Revenue, Expenses, and Withdrawals are directly related to Owner's Equity. Revenue increases owner's equity, expenses decrease it, and withdrawals represent the owner taking out cash or other assets, which also decreases owner's equity.
Learning Objectives
- Analyze the consequences of several transactions on Assets, Liabilities, and Owner's Equity.