An increase in which account would increase owner equity?

Accounting Dec 16, 2020

Expert Solution

An increase in the asset account would increase the owner's equity. Owner's equity is the excess of the assets over the liabilities for the period. Basic accounting equation is Assets = Liabilities + Owner's Equity. With this formula Assets can be viewed as having direct relationship or impact with Owner's Equity. An increase in asset would result to an increase in owner's equity and a decrease in asset would have owner's equity decreased.

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