CengageN0m2l Online tex e Calculator Transactions affect

: CengageN0m2l Online te..x | | e | Calculator Transactions affecting owner\'s equity include Oa. owner\'s investbents and payment of liabilities Ob. owner\'s investments, earning of revenues, incurrence of expenses, and collection of accounts receivable c. owner\'s withdrawals, earning of revenues, incurrence of expenses, and purchase of supplies on account Od. owner\'s investments, owner\'s withdrawals, earning of revenues, and incurrence of expenses

Solution

The answer is Option d. Transactions affecting owner\'s equity include : Owner\'s investments,owner\'s withdrawals,earning revenue and incurrence of expense. Owner\'s Investments and earning revenue increases the Owner\'s Equity. Owner\'s withdrawals and incurrence of expense decreases the Owner\'s Equity. Payment of liabilities decreases the Owner\'s Liabilities and assets. Collections of account receivables increases the Cash and decreases the account receivables (i.e.assets remain as it is) Purchase of supplies on account increases the supplies (assets) and increases the accounts payable (liabilities).