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1 August, 11:28

Decreases in owners' equity are caused by:

A. Purchases of assets and payment of liabilities

B. Purchases of assets and incurrence of liabilities

C. Payment of liabilities and unprofitable operations

D. Distribution of assets to the owner and unprofitable operations

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Answers (1)
  1. 1 August, 11:50
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    Distribution of assets to the owner and unprofitable operations

    Explanation:

    Distribution of assets to the owner and unprofitable operations decrease the owners equity. Asset distribution decrease the assets of the company and Equity as well in the same time. The decrease in value of assets will result in the decrease in the value of equity on the other hand. So the correct option is D. Distribution of assets to the owner and unprofitable operations.
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Home » Business » Decreases in owners' equity are caused by: A. Purchases of assets and payment of liabilities B. Purchases of assets and incurrence of liabilities C. Payment of liabilities and unprofitable operations D.
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