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    petrussell's Avatar
    petrussell Posts: 4, Reputation: 1
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    #1

    Jan 20, 2012, 08:56 AM
    Accounting equation
    Eventually as revenue increses, owners equity will_____________-
    petrussell's Avatar
    petrussell Posts: 4, Reputation: 1
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    #2

    Jan 20, 2012, 08:58 AM
    Accounting equation
    As expense increaseowner's equity wll eventually ____
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #3

    Jan 20, 2012, 10:04 AM
    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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