Asked by Bailey McPhee on May 22, 2024
Verified
There are four transactions that affect owner's equity.
(a) What are the two types of transactions that increase owner's equity?
(b) What are the two types of transactions that decrease owner's equity?
Owner's Equity
The ownership stake of shareholders or owners in a company's assets, after all debts have been subtracted.
Transactions
Business dealings or events that affect the financial position of a company, recorded in the accounting records.
- Determine the categories of transactions that affect the equity of the owner.
Verified Answer
TF
Tristan FernandezMay 25, 2024
Final Answer :
(a) Additional investment by the owner and increase in revenues
(b) Withdrawal made by the owner and increase in expenses
(b) Withdrawal made by the owner and increase in expenses
Learning Objectives
- Determine the categories of transactions that affect the equity of the owner.