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Operating expenses considered in a vacuum by themselves would tend to decrease owner's equity. Indirectly, however, they are part of how owner's equity is increased, in that they are necessary in order to generate revenues.

Broadly speaking, if the revenues earned for a period are greater than the operating expenses incurred, the net result is net income for the period, which increases owners' equity for the period. But if the total revenues for a period are less than the expenses incurred in the period, the result is a net loss, which would decrease owners' equity.

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Q: Do expenses incurred in operating a business increase the owners' equity?
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