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Which ONE of the following causes OWNERS' EQUTY to INCREASE?a Expensesb Dividendsc Borrowingd Revenues

User Hanshenrik
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1 Answer

3 votes

Answer:

Revenues

Step-by-step explanation:

Revenues represent an inflow into the company which contribute towards retained earnings and thus Equity. Expenses reduce retained earnings as do dividends.

Borrowing will increase the amount of money in the cash account which can then be used to buy more assets. It does not increase equity, but simply increases the company's liabilities.

Therefore the correct answer is revenues.

User Sleeparrow
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