8 Questions
Which of the following actions would increase owner's equity in a proprietorship?
Cash is collected from a customer who had previously been billed for services.
Which of the following actions would decrease owner's equity in a proprietorship?
The owner withdraws money for personal use.
Which of the following actions would have no impact on owner's equity in a proprietorship?
Money is borrowed from the bank.
Which of the following actions would increase owner's equity in a proprietorship?
Cash is collected from a customer who had previously been billed for services
Which of the following actions indicates that a company has a profit?
Revenues exceed expenses for the period
Which of the following is NOT a component of owner's equity?
Existing debts and obligations of the company
Which of the following actions would decrease liabilities and increase owner's equity?
Decrease liabilities and increase owner's equity
Which financial statement reports the assets, liabilities, and owner's equity at a specific date?
Balance sheet
Test your knowledge of proprietorships with this multiple-choice quiz! Determine which scenario results in an increase in owner's equity.
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