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Questions and Answers
Which of the following actions would increase owner's equity in a proprietorship?
Which of the following actions would increase owner's equity in a proprietorship?
- Money is borrowed from the bank.
- The owner withdraws money for personal use.
- A service is provided to a customer on account.
- Cash is collected from a customer who had previously been billed for services. (correct)
Which of the following actions would decrease owner's equity in a proprietorship?
Which of the following actions would decrease owner's equity in a proprietorship?
- A service is provided to a customer on account.
- Cash is collected from a customer who had previously been billed for services.
- The owner withdraws money for personal use. (correct)
- Money is borrowed from the bank.
Which of the following actions would have no impact on owner's equity in a proprietorship?
Which of the following actions would have no impact on owner's equity in a proprietorship?
- A service is provided to a customer on account.
- The owner withdraws money for personal use.
- Money is borrowed from the bank. (correct)
- Cash is collected from a customer who had previously been billed for services.
Which of the following actions would increase owner's equity in a proprietorship?
Which of the following actions would increase owner's equity in a proprietorship?
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Which of the following actions indicates that a company has a profit?
Which of the following actions indicates that a company has a profit?
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Which of the following is NOT a component of owner's equity?
Which of the following is NOT a component of owner's equity?
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Which of the following actions would decrease liabilities and increase owner's equity?
Which of the following actions would decrease liabilities and increase owner's equity?
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Which financial statement reports the assets, liabilities, and owner's equity at a specific date?
Which financial statement reports the assets, liabilities, and owner's equity at a specific date?
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