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-   -   Accounting equation (https://www.askmehelpdesk.com/showthread.php?t=629032)

  • Jan 20, 2012, 08:56 AM
    petrussell
    Accounting equation
    Eventually as revenue increses, owners equity will_____________-
  • Jan 20, 2012, 08:58 AM
    petrussell
    Accounting equation
    As expense increaseowner's equity wll eventually ____
  • Jan 20, 2012, 10:04 AM
    pready
    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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