which-of-the-following-decreases-owners-equity-a-investments-by-owners-b-losses-c-gains-d-short-term

Question

Which of the following decreases owner’s equity?
A. investments by owners
B. losses
C. gains
D. short-term loans

Puneet Prajapati · Accepted Answer

Okay, So let&#x27;s understand our institution. Before moving on to the solution, we will understand accounting question which will help us to understand the choice which we designate as the correct answer. So what? I would probably Okay, So what? This intercom vanquishing? I&#x27;m writing the six with the green bin so that you can get up. Your idea. What are the six? I&#x27;m writing the laboratories with the red pen. Did you know the green? The green color signifies work, and the doctor signifies what? And the blue collar signifies something. It&#x27;s OK. Okay. No, let&#x27;s understand. Let&#x27;s suppose you have a business off selling video games to customers. Okay? No. What happened? Whenever you will sell the video games or CDs or any type of hard right? Always the beans could be downloaded and played by the Children. The agency, that they will pay you off later like environment or to want. So what happens when that even happens? The recoverable amount from the customers become your assets. Okay, so let&#x27;s suppose you have sold video games off 10,000 daughters. Okay, but what of that? Over the six month beard. Know what happens? Thank you. Ju also you do not produce the video games or series or David is whatever type on your one You purchased them from outside the country or outside the answer of your state. Okay? No. What? No. What happens if you have purchased them? So you have to pay off them also? Yeah, you&#x27;re supplying Also. But when you have purchased the video games initially from the supplies you also pull your supplies that you will pay off them later. Like in fundamental to month. Whenever you will get your payment from your from the parents who have purchased the video games from you. So you have purchased material or we can sit purchase video games. Initially, all five get help. My good owners, That&#x27;s ready. Here now let&#x27;s come Toe owner&#x27;s equity. Now what will happen to owners Equity? It will come to $5000. Is that clear? Okay, why? They&#x27;re so 5000. Be ok. Be First of all, let&#x27;s the understood the meaning of the sex. The recoverable amount. Okay. It denotes the recoverable amount from the customers. What? 5000 denotes $5000 notes The papal amounts to the suppliers. OK, which we have to pay in future. What if $5000 here the owners increases that. It is the take of it from business. Okay, it is the take of it from business. Know what happens? It is the amount of which will be taken away by owner of the business through their homes. Okay. Know what happens? What? You can think that which I don&#x27;t or which type off items will be included in orders equity. So we can say that take of a is a more like profit and loss. It is very clear, because if the in vote the business, what business owner makes and then business owner makes profit or loss, that&#x27;s all. Okay, so what do you think? Either the profit will increase the owner&#x27;s equity or lost will increase donors. Of course, the profit will increase the owner&#x27;s equity. Okay, If the you know, if that recoverable amounts are more than the table a moans, then the prophet will increase. And like vice the or security will increase. So let&#x27;s like there would. That&#x27;s a supposed a this perfect and owner&#x27;s equity. Oh, this is not a new one. We will understand that works what happened and get somebody else scenario. Okay? The profit entity, the profit and the profit increase. As so, it will increase the owner&#x27;s equity if loss increases. This will degrees the owners okay by that. So in the end by that so because at the end, the business owners will either make profit or loss. Okay, But when will. But when he will make profit so over secretive off testing, please. Okay. However, if the larger increase like, let&#x27;s suppose some parents say said that we will not be off, we will not pay you environment or Tumen. They will pay you in running out or two years or even not paying the amount. Okay, because we didn&#x27;t like the games. Okay, so what should happen? In that case, the business would have been make losses because it has purchased these really begins from the supplier. But he has not been able to recover that long against the perhaps sold on the periods. So it in that case, it will incur loss so it will decrease the owner&#x27;s equity. So we have, like, double solution. What is the solution or what is the correct choice for have a problem? Is the losses that this choice be OK? The losses they have seen that whenever they will be lost or were they never lost will increase the owner&#x27;s equity will decrease. Okay, please. Like now. Set sheet. One shake toe. Okay. For your better Vivian. However, the solution is Joyce be okay. That&#x27;s all for our solution. Thank you.

Puneet Prajapati · Answer

So let&#x27;s understand the current solution. Okay? First, we will understand the meaning off owners. Okay. So I would make it more simply when? This day. Okay, victory for us holding capital that has bean and Mr By on that in the business. Who then day to day operations. Okay. And also owner stick Woody, they Ingres, if they will be more than whispered. Perfect. Okay, the venues. Now, it is very clear to you that court I have return here most of all it to first to capital. Okay, that has been in Mr There has been administered by, you know, in the business. Okay, during they day operations like owner&#x27;s equity, it&#x27;s difficult for us to the capital that has been in Mr Boehner in the business to run day to day operations on business. Okay, it is just a typical a moment that will that will be in district by by the older of the business who is willing to start the business. Okay. However, this amount will change. Oh, no. Maybe because it here do your business most prominently by that. So the owner&#x27;s equity change If there is, if they will be more than Miss Smith, Or we can say whenever the owners things, that is, that is our investment should be liquidated or desired from the business. So the owners equity change also, So they will be degrees and increasing the owner&#x27;s equity based on the items we have listed here like invest bearing, brawl fades, revenues. Okay, if these items will increase the owners in critical injuries if these I don&#x27;t really degrees the owners equitable degrees. Okay, so that is right. Let&#x27;s support the owner of business. Makes a profit for the car. India. So it is. It will be very on this that the profit will be only too good attributable to order. Okay, because he is darkest of this business. Okay, so that is why the owner&#x27;s equity abilities in case the revenue increases. There are also other secret increases by that. So because an increasing revenue will also imply an increasing profits. So there is a likewise increase in orders equity, engage them and Miss Mildew likes night. I suppose owner has been a big lottery. Okay, let&#x27;s say $100,000. So he is also looking for lucrative opportunities to raise funds. But now he has one the your big ticket. Now what will you do with them out that has been going by him? Hey, will invest doctor mom in police business enhanced or seek Otisville increase. Okay, because, I mean, they&#x27;re spending the business. I know what s portion is just that Each of the following is not which of the following choice will not in Jesus orders equity. So accusation off estates by incurring liabilities will not in breezy in case the what? Who is the owner&#x27;s equity? Okay, so because what happens when you will exchange the asset for Philip, you will get the assets. However, when you will anger the libraries also, so you will have more elaborate is on your balance sheet. Okay, Please make understand that for that insert, it&#x27;s on nothing but the recovery will most recovered. Ebola moans from the customers And what that celebrities just table hopes That&#x27;s all is off now. Please make a little effort. Okay? We will understand. Eluded that didn&#x27;t last problems know what happens whenever they will be exchange of us exporting during our liberties so it wouldn&#x27;t know it will never impact. It would never have any impact on the and That is why the correct choice is exchange up. I said spot including clarity&#x27;s. Okay, So correct choices. Okay, so that&#x27;s all forever. Solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the current solution. But before moving on to the sedition, they will understand the accounting question. Okay, that will help us when this dandy derivation off pekarik choice. Okay, so it is a six minus library days. He was two owner&#x27;s equity. Okay, let us suppose you have Ah, business often Egypt. Okay, so you have soared the furniture. So you have sold the furniture to your customers. Oh, let&#x27;s see. $1000. Okay. No, what happens whenever you win? Sale the furniture to your customers. The customers say is to you that they will pay you off later. Like environment or two months. Okay. So if they so whatever the amount, they will pay you off later. That becomes recoverable from the customer. And whatever will be that recovery will amongst baby, those amount will be considered as a sex. Okay, No, that is very clear to you. Whatever you have to recover from your customers, those amounts will be considered as a sex. Know what liabilities? Larry, These are the amounts which for which for which you have, you know, a real benefits are services like suppose for producing furniture is you have to purchase wood blocks from the suppliers. Okay. Who deals in cutting the trees from the village from the forest and providing the four blocks for producing for nature. And we&#x27;re and God made products. Okay, So you also have purchase, um, Ramadan live from your supplies, but you have not paid them. So let&#x27;s suppose you have not paid $500 to your place like you have to pay 500. Noticed you&#x27;re supplying environment time or human state. Now, what happens were ever will be the people amount will be considered as liabilities. Okay, now, Andy. And what happens? No. So what happens? There is a $500 off owners equity. Okay, so we have understood the meaning Off $1000 means a sex. We have understood the meaning of liabilities. And at the end, what is this? This is the take of a off who take away from business. Okay, They coming from business like that one of really take of a $500 to his home. Not a portion has asked us. You have invested the meaning of a sex library. Peace and owner&#x27;s equity so there can&#x27;t vanquish in is now clear to you. But what is the meaning of owners? Equity liabilities, assets and how we will form the whole economy? Question to get the meeting. That what amount filled the owners owner. Very take of every other business, too. Is home okay? No. Well, they will come to our main portion. Know what happens. Let&#x27;s suppose you have. Ah, you have again a business off selling furniture to your customer. Okay? No. What happens? Let&#x27;s suppose you you have a bag estimate. Okay. And one other business. All that is having a good customer. So you both are friends? No. What happens? You You settle your thing that please let&#x27;s exchange the customer receivers. Know what happens. You will have. No, I&#x27;ll tell exchange off the sex because a recoverable amount from the customer will be considered as a sex. Now, after exchange of s search, you will have the good customer and your friend will have the next customer. However, the system in amount I would will still be $3000 not $2000.1000 dollars. Okay, so it plus $1000. And again it was $500. So the obviously it was from bad customer before exchange. Now, after the change, it was good customer, but still it waas. But still it is now $1000. Libraries are still $500 from the previous example. So what will be the owner&#x27;s equity? $500. So our portions is that it will not make any difference Toe owner&#x27;s equity if there will be an exchange office set for and Asset Okay, No, we have understood the Pont equation and the effect off exchange office. It foreign asset on the owners equity. Okay. And now what is the actual impact? So there is no impact on the owner&#x27;s equity off exchange of asset for unnecessary. So what is our correct choice for the problem? But it choices be that this may have no impact. Okay. May have no impact on equally. Okay, so you need to write down before she has been a second shoot on digital books for battery vision. However, the correct choices choice. That&#x27;s all our solution. Thank you.

Puneet Prajapati · Answer

Okay, So let&#x27;s understand our current solution through lover example. Okay, let&#x27;s suppose we have Mr A. Okay, So what, Mr. A is thinking that he is willing stocked godman business More specifically, we can see a painter&#x27;s so start government business know what happens. Mr. A is also short offers. You can write it down, which I am, you know, going go out right now on the sheet. Okay, so Mr is also short offers. However, his friend Mr B has asked Mr A various types of methods glorious forms. Okay. Know what happens out of such current betters as other questions also specifies which is not a sustainable method off raising the forms for a business. So Mr BCE&#x27;s this is the naval mattered. Is one rich gifts sufficient as villas? Sir Danity who? Who receives such parties? Okay, what? Mr Bees is that the ferns which are going to be raised toe any type off method or begins a true any type of medium. First of all, it should be sufficient. And second, it should be sucking. Okay, Now, out of the options available, bitter potion has asked us then which of the falling is not a sustainable mattered off raising funds. So back city for we will discuss the attacks in France by that. So because it is the most appropriate choice out of victory out of the current available options. Okay, so tax difference are basically the mountains which are checked. Expert is likely to receive from tax authorities. Okay, let&#x27;s suppose you haven&#x27;t come off $100,000. Now you have to pay tax to the government. Now, you have already deposited the checks, which is more than the liability you have towards the government in respect of Texas. So it is very likely that you are You&#x27;re going to receive the tax difference because you have deposited Oh, great. A remote, then your liability. Okay, But what happens when when the government assesses your tax liability and doesn&#x27;t think differently? Okay, there isn&#x27;t a desert. There is a natural tendency of a person over taxpayer. We can see natural tendency is to avoid Texas. So the government will work against that. So the government assesses the experience liability. As for the act, but in some other directions also like that experience may avoid some income sources to include income in their tax assessment. So the tax authorities really do that will go back. Okay, so Texas for text defends on so they are not sufficient. First of all there, nor sufficient they&#x27;re nor sufficient by that. So because it maybe around do mostly very ready. It made a change to $50,000 that&#x27;s all. And that&#x27;s and that will be not sufficient for a business who get funded at the initial stage. Okay, why? They&#x27;re so because at the initial stage, it is very likely that for the initial five years, the business is going to make loss even if and more specifically by that by that happens because the business does not get the required number of crimes who started the business also. So that is very $50,000 with Lord or maybe can say $100,000 will not being a force. Okay. And it also depends on business to business case business to business case like what type of business you are going to start. Okay. Also did is not ready sub danity as to received off text difference by that. So because it may happen that it already faces some some of these shoes in processing the difference. Or maybe a much time greater than required time. As for the or local regulations. So your text different? May God believe? Okay. Now, if you&#x27;re willing to start the business in one month and if your text difference are going to be sure after six months, then it&#x27;s very likely that there is, you know, very, very lasted less that entity that you will get your text So it is not a sustainable mattered off fundraising. Okay, so the correct choice for problem is day exit points. Okay, that&#x27;s all for our solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the current solution. But given keys, first of all, people right over BC counting Grishin and from the F B. We&#x27;ll start with the institution. Okay. Okay, let&#x27;s see. We are We&#x27;re very, very willing to dealing the business off. Selling, selling close to our customers. Okay, in tow. Mainly textile business. But I don&#x27;t need a level, you know. So I do not have sufficient money to start the business. So what will I do? I will go to the misters. We go to my related Sze, I will go to my friends to raise the capital, to raise defendants to France to find to find my business. But Okay, so what happens? And a citizen amount? That s it is what What are the elements? First of all, I&#x27;m talking about them. Then we&#x27;ll move to the solution under six under a sex. Those are those amounts which are recoverable from anyone else, such as customers, depositors with whom we have deposited our money or the person&#x27;s the womb. We have advanced some off our cash reserves. Okay, Those recoverable amounts will be included in our sex and most importantly, cash in bank balance cash in bank balances. Less. I am writing. Bless. There is nothing. There isn&#x27;t a thing to confuse about. Get confused about it. It is just I&#x27;m, you know, trying to locate something else before writing anything. Okay, Gash bank balance. Bless. And you ballistics. No water. Then do ballistics. Let me show you. If I have to produce some clothes to say to our customers, we will have machines, the produce roads. We have vesting testing machine so that we can know that for type off. What type of quality? Off load via policing right now. Okay, for these are the items we will be. Oh, you know, listing under the under Tito sex. In contrast to their sex, the libraries are in contrast to asserts. Okay, in contrast to recovery bailamos lively Be able amount, sir. Considered in the landlady says outside. So there is no contrast against cash and bank balance. Okay, but I can write very precisely that it is sharp and long time dead like you take, you know, known for loan to purchase the house. Okay, yard leakers to purchase any type of property like that. So these amounts which are people after a certain period of time will be included in liabilities like, it is the money that you have to pay to someone for the benefits. You have a bit of a okay. No. What is that? Don&#x27;t equity. It includes capital greased. The officer Lawson. What is the meaning of capital? Raced everything. You very, very, very shortly. Okay, So capital raise beans. What? What amount of friends you have raised toe internally or externally, from within the organization. What from outside the organization that the money will be considered in equity. What we can also see very well include our profit and loss on during the period. In a pretty component, we can also it could be is also known as you can write it down. What I&#x27;m writing here. Okay. Take away from business off being all liabilities. Okay, I&#x27;m asking to write. You write down on all of this by because this becomes easier when you revise for your exams also. Okay, so these are the gums. Okay. Now let&#x27;s move to our main solution. What is our main solution? First of all, we will draw our basic question and exams also, wherever you go in most of the accounting concept, you will face accounting question as you are complimented. Topic to help you throughout the subject. Okay. No, the portion is asking those What will be the effect off issuing stocks. Okay. Issuing capital between stocks in exchange for escorts. First of all, I will brought a dragon for you so that you will be able to understand it. Matters like to suppose we have extent company okay, Willing toe start new loading business. Okay, we&#x27;re chart off firms as off. No. So it will Porto a company. The next company says that that ex company say&#x27;s toe a complete that ex company will give shares Love X company go Any company okay? And Indra done what he has to do. They will give a sex who x company who find the business purpose. Okay, this is very very this This transaction is very, very known to you that what&#x27;s happening here in the red line, the eight companies is giving a sex to x company so that I said sometimes all you can say, you know, cash bank balance machinery to start the new business. Okay, but for text company is giving to a shares off X shares of ex company to a company. These are ownership off issuing company who silencing Go. We will understand the shares. The Tom she is detailed capital that some provincial capital and like other terms in later future. Then we will face much detail problem. But just understand for the same Sekoff this solution that X is issuing begins it 10% 10% ownership off itself off ex company do a complete on in exchange ex companies receiving ex sex from a comic who started a project, that&#x27;s all. Okay, so they will be increasing its excite by there. So because the area here, the company is giving a search to X company. Okay, so they will be in Greece. Dinosaurs? That&#x27;s $1000. Okay, so there are no liabilities? I think so. Because there is no recoverable PayPal a mouse. However, as I have started here, that vote number the capital raised whatever defendants you will raised. You will include that amount here as villains. Okay, so you&#x27;ve been in $2000 here. So you have raised the capital. Who? The extent of $1000 from a company. You have received a sex from a come from a company. So the extent off $1000. So they&#x27;re on both side in Greece. We&#x27;ll get now. Let&#x27;s form the solution. If there are both side in grease. So the correct choice. Just if you have industrial this transaction, if you have in the strictest election, then it would not have bean much difficult. Oh, I understand this calculation, which I have just experience. I am, I am taking $1,000,000 just isn&#x27;t just as an example, Jubal, you can think it like this. Also, like we have received, the, uh, received has subsided. Plus, like we have received a sensible. So we&#x27;ll make in addition to the Essex if we have so And here we have sure shares are assured the ownership off our company to someone else like a complete. So we will also sure. So the larger make in addition to the duty Also, that is right. There is both side in Greece. Okay, so the correct choice for probably 28 days. Thank you

Puneet Prajapati · Answer

Okay, so let&#x27;s understand. Living backed off the current, even which has been stated in the problem. First of all, we will start with our basic counting the question, and then we will move forward to the problem. Okay, so a set minus liabilities week wants to equally. So this is the basic Compton question. First of all, I will give you a brief about were the quick accounting question sees Lecter. Suppose we have a business off clothing or business off selling phones. So we have We are likely to receive $1000 from a customer. Okay, $1000 from a customer, as we have as we have sold over our elementary in terms of form. So the customer so that we are likely to receive $1000 in terms of a set. Okay. So that I said it has the meaning that we have. You&#x27;re likely to receive the amount from the customer now then generally, things such a sex. First of all, we have board, the phones are bored. Some of the materials from office supplier so make this area to the customer. So viva Mort. Some material, like, you know, assembly material, or make the phone assembled before before the selling to the customer. So we have generated the liabilities like we have not paid among to our supplier for which we ever really benefit So such liabilities. Or we can say such amount that has not been paid yet a liabilities and among which has not been paid off, for which we have a really benefit. So with this $500 So what is the what is the actual value of business or begins? What is the actual take of it from the business after paying off the liabilities from the A sex? Okay, so $500. Because after being off the liabilities of 500 what we will have the will have $500 in other Hank that will be over. Take away from the business. Okay, Now let&#x27;s move forward. That what type of items in a six liabilities as well as an equal. Okay, bye. I have used different colors for different variables. There is a specific reason behind this and 40 reasons have any just experience. Do you see the sex are the amount or we can see in farm off in form of a Benji ballistic? We can see very, very specifically a machine. Oh, are any type off any type of a set we can have for producing the benefit for the entity, like in a sex worker bee, for for the current problem for the current problem, Very specifically, I will say it. The cache includes the item s the assets include The item is cash. You can know down these items like as seen from the equation and below them. What I&#x27;m going to write. Okay, so accounts receivable. Okay. Accounts receivable deposits with banks. If you have deposited your money with the bank, then eventually at any at any time in leader future what you will You are likely to receive their dying deposit from the banks. Why? Because that&#x27;s their own money. So a sect is typically classified into two items, which is actually morning. So cash jewel own because you will have cash in your bank accounts in your drawer in your pocket. So, in terms of business, I&#x27;m going right now on accounts receivable is the Monfort you&#x27;re likely to receive okay and deposit with the bank is also typically classified as the amount which are likely to receive from the banks. Okay, so these are the most improbably event. See which memory deal right now? Okay. And Borden, Dems of liabilities. So I will make you no distinction like this. So that a week, maybe great. So make a clear distinction. Award item are comprising which element. Okay, so in gifts of liabilities, do you have short for long term debt? Like short term debt is a debt which has to be paired with dina within a year. With implements begins there specifically on more than that will be it will be classified best long term hit. Yet it has the meaning off accounts receivable that we have in case of a sex. We&#x27;re likely to receive a moan from someone, but in case of liabilities that this becomes a demon. What about the townspeople? It represents the amount, actually, which has to be beard to the supplier for which we have a really benefit. Okay. Like deposits. Okay. Off against advances we have received from the customer. Because if let&#x27;s say if if a seller of phone has received advance from a customer So there is also a liability for what? To supply the phone so that customers and what will be the amount of their pliability, the cost of the phone? Because you have received an advance from a customer stating that you that the phone will be delivered in two weeks or expert the business requirements. Okay, so that is also 11 p. So then it advance retreat, arrest. And it could be We will be mostly considering as off no capital capital greased. Okay, we will discuss it in in very, very detailed when we will face these terms. Okay. But as of now, the capital is that capital bases mostly using terms off Inquisition capital which is raised who financed the project. Okay. Expanding business or financing day to day operations, Capitalist Entertain earnings and as a part of the day, no earnings, profit and loss. Okay, profit and loss vibe, profit and loss. ASM As a matter of convention as a matter off Dale, you&#x27;re a level in the balance sheet Classifications, rules, retained earnings. Or we can say the part off equity. We&#x27;ll also include the profit generated profit or loss generated during the ear. Like you can see when we will have a business. Okay, then we will have a business Whatever the profit or loss will be generated in the business, Who will Who will be attacked, Loss or who will you no avail. The benefit of profit, Of course. The business and tip in your who started the business. So that is whether it could be is allergic to the mostly duty business businessman. Okay, so that is my bm included the profit and loss of profit and loss amount in the retainer thinks which which will be in fortunately, he could equally part. Now let&#x27;s come blow the problem. It has been seared. So let&#x27;s form over the basic accounting questions so that we can answer ever cushion. Okay. No. What has Bean stated in the problem? Like when the current month utility bill will be paired? So what? Type off for type off impact will it have on the both sides of the equation? These This is the left hand side of the question. This is the right inside of the question. Okay, so don&#x27;t confuse with this, like, both side means assets or liabilities. No, that&#x27;s not the meaning. Actually, these are like both sides of the question. Like you. We have ah, transaction that the current month utility bill is paid, so it will have impact on the two sides Like 1st 1 is this Most money&#x27;s this one. And second is this one. Okay. Okay. So now if the current month utility bill will be paid, then first of all, if we are being something, we will be releasing the gash from over the six. As we have seen in the this example. So the cash will be, you know, the cash we deducted in this case by because we are being someone. Okay. Now there is no relation to liability. Why, they&#x27;re so because we have just incurred the utility bill in the current month. So be it is doing the month. It has to be paired, but it has not been outstanding. Okay, what is the meaning of our standing that lets you suppose if you have incurred the genovian, If you have incurred any phone expenses for the gin very month and you have coming, you have come forward to February mint, but you have still who still have not paid the month of General. So that is a lie that will become a liability. But in case off the current case it will. It will not be a liberty. So where they can&#x27;t go? The effect will go to that. It could be part. And in a goody bart, it will be most specifically related to the being that buck and how beautiful park I&#x27;ve been expecting. You see, in business what we generally what we generally do, We have a motive on the profit. Okay, that&#x27;s all. If you if you&#x27;re including some expenses, you will have prepared for very, very sure as of today or any later point in time, you will have to pay expenses. If you will pay expenses, you will get your cash is abused. Okay, that&#x27;s clearly total. So first effect off the tradition has been created that on the left, inside on the insect in there set element. Okay. But it will also decrease your profit violated. So because you are, if you are including some expenses, it will obviously decrease your profit, right? If you will, if you will have select Oh, like suppose you haven&#x27;t driven your $1000 but you have not taken any expense. That&#x27;s of course. It&#x27;s like hi protected and totally hypothetical. But if you&#x27;re willing to cut expenses so it will decrease down your revenue to Okay. That is why the prophet will also decrees. Okay, who&#x27;s to reflect that? There will be double effect off the transition. Okay, so what? What is the actual answer? We have a decline on the sex side. Okay. The left hand side of the equation. Long with that, we have declined on the right hand side of the equation in the equity side, so we have dragged off a solution. But as a jingle or general rule what you will have please write it down to make sure that you will. You will get to know about this concentrated on two. Then we will have much advanced problem. Okay? Every financial transaction, we&#x27;ll always have double effect. One accounting the question. You could just write it down because it is the role we have just derived out off the current problem. Also. Now, next we will write other choice. So what is the actual choice? Both side Begley&#x27;s. Okay? My actual. Because we have just seen twice that we are getting our asses excited. Used by the amount that we repaired for the current month utility bill along with that we will have our profit reduced to the level after lingering the after regarding the expenses also. Okay, So the correct choice for the Children before is be Thank you.

Problem

Exchanges of assets for assets have what effect o…

Problem 9 Hard Difficulty

Which of the following decreases owner’s equity?
A. investments by owners
B. losses
C. gains
D. short-term loans

Answer

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Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting