an asset
Cash is an asset. It could also be part of what makes up an owner's 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
Retained earnings are considered part of owners' equity. They represent the cumulative amount of net income that a company has retained, rather than distributed as dividends to shareholders. Retained earnings reflect the company's growth and reinvestment into the business, contributing to the overall equity value.
by looking at the owners' equity from last year's report
Cash is an asset. It could also be part of what makes up an owner's 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
Retained earnings are considered part of owners' equity. They represent the cumulative amount of net income that a company has retained, rather than distributed as dividends to shareholders. Retained earnings reflect the company's growth and reinvestment into the business, contributing to the overall equity value.
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.
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.
Owners Equity accounts are increased by a credit. If you look at the accounting equation you will see the logic Assets = Liabilities + Owners Equity You can't add a debit + credit. So Owners Equity Increases with a credit.
Yes owners drawing account is contra account to owners equity and closed to owners equity account at the end of fiscal year.