assets and liabilities
liabilities
Say if your mom was a good in my store, and I sold your mom, then that would affect the owners equity. If your mother was a good hooker and I made an investment in her vagina to make me some money, and she makes revenue off of that... That would affect the owners equity.
Sales is generally considered "Revenue" or "Income" and therefore are an Owners Equity Account. Sales affect Retained Earnings and Retained Earnings affects Owners Equity.
when assests decrease owners equity will also decrease
assets and liabilities
liabilities
Say if your mom was a good in my store, and I sold your mom, then that would affect the owners equity. If your mother was a good hooker and I made an investment in her vagina to make me some money, and she makes revenue off of that... That would affect the owners equity.
Sales is generally considered "Revenue" or "Income" and therefore are an Owners Equity Account. Sales affect Retained Earnings and Retained Earnings affects Owners Equity.
when assests decrease owners equity will also decrease
No, Salaries are an expense. EXPENSE is a part of owners equity but you would not put salaries in the owners equity group you would put it with the expenses.
An advantage of bond financing is: a) Bonds do not affect owners' control. b) Interest on bonds is tax deductible. c) Bonds can increase return on equity. d) It allows firms to trade on the equity. e) All of the above.
by looking at the owners' equity from last year's report
Investment from factory owners is equity and it is shown in balance sheet of business.
Withdrawal decreases owners equity.
Profits would increase owners equity, loss and drawing would decrease an owners equity.
Credit Decreases an Asset and Debit decreases Owners Equity.