0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Why does expense account require a debit entry to increase equity?
A debit to an equity account, or in this case an expense account, will increase the expense account. An increase to this account means the more expenses you have. The more expenses mean the less money you earn and therefore you make less money in your income statement because revenues - expenses = income
The gross increases in owner's equity attributable to business activities are called?
revenues
What effect do revenues and expenses have on retained earnings?
Revenues Increase and Expense Decreases.
True or false revenue is a decrease in owners equity?
False, as revenue increases the owners equity if expenses are less than revenues and vice versa.
What is The gross increases in owner's equity attributable to business activities are called?
The gross increases in owner's equity attributed to business activities are called revenues.
Does an increase in revenue always lead to an increase in equity?
Incresea of revenue increases the equity only if business earn profit but if rising revenues are also backed by rising expenses and in the end if company earning loss then it will cause in decrease in equity.
How is stockholder's equity increased by revenues and decreased by expenses?
Briefly explain why the owner's investment and revenues increased owner's equity, while withdrawals and expenses decreased owner's equity
Do Revenues represent decreases in stockholders' equity?
no, they represent increases in stockholders' equity.
What are the subdivisions of owners equity?
the four subdivision of owner's equity are: Capitals Withdrawls Expenses Earnings (Revenues) DO NOT MISTAKEN ACCOUNT PAYABLES & RECEIVABLES AS BEING EXPENSES AND EARNINGS or REVENUES :)
What are The four subdivisions of owner's equity?
the four subdivision of owner's equity are: Capitals Withdrawls Expenses Earnings (Revenues) DO NOT MISTAKEN ACCOUNT PAYABLES & RECEIVABLES AS BEING EXPENSES AND EARNINGS or REVENUES :)
Why does expense account require a debit entry to increase equity?
A debit to an equity account, or in this case an expense account, will increase the expense account. An increase to this account means the more expenses you have. The more expenses mean the less money you earn and therefore you make less money in your income statement because revenues - expenses = income
How a company can increase its Customer equity?
how company increase custmer equity
Expanded accounting equation?
Assets =Liabilities +(Stockholders' Equity=Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock. )Assets =Liabilities +(Owner's Equity=Owner's Capital + Revenues - Expenses - Owner's Draws.)
Do expenses incurred in operating a business increase the owners' equity?
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.
The gross increases in owner's equity attributable to business activities are called?
revenues
What effect do revenues and expenses have on retained earnings?
Revenues Increase and Expense Decreases.
True or false revenue is a decrease in owners equity?
False, as revenue increases the owners equity if expenses are less than revenues and vice versa.
