Eventually as revenue increses, owners equity will_____________-
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Eventually as revenue increses, owners equity will_____________-
As expense increaseowner's equity wll eventually ____
Revenues - Expenses = Net Income
Net Income - Cash Dividends is added to Owners Equity as Retained Earnings at the end of an accounting period.
Therefore an increase in revenues and or a decrease in expenses increases Net Income, which in turn increases Retained Earnings and ultimately increases Owners Equity.
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