statement of owner's equity

capital increases, when the business has:

• owner contributions of capital

• a net loss (expenses exceed revenues)

• owner withdrawals of cash or other assets

• a net income (revenues exceed expenses)

the net worth invested in the business by the owner

Sole Proprietorship

Business with: single ownership no sharing of profit and loss unlimited liability one man control

• single ownership

• no sharing of profit and loss

• limited liability

• one man control

show the true statement

• relationship between the owner's equity and the rules of debit and credit:

  debit increased

  credit decreased

• the accounting equation for owner's equity:

  + capital

  + revenues - expenses

  - withdrawals

• net income shows the changes in capital for a business entity during a time period, such as a month, quarter, or year

• debits, which decrease owner's equity, also decrease expenses

choose the owner's investment

• performed a service and received a promise of payment

• took assets out of the business for personal use

• paid cash to an employee for services performed

• transferred assets to the business from a personal account

if company has liabilities of $29000 and assets $66000, its owner's equity is:

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the only difference in equity between a sole proprietorship and a partnership is

Retained Earnings account is sometimes called .................... because it

represents the stockholders’ claim to the assets that are earned from operations and reinvested in corporate operations.

• Net Earnings

• Operating Earnings

• Earned Capital

• Earned Cost

if company has assets $83000 and liabilities of $34500, its owner's equity is: