In a Statement of Owner's Equity,decreases in Owner's Equity Result

question 188

Multiple Choice

In a statement of owner's equity,decreases in owner's equity result from ________.

• A)owner's contributions
• B)net losses
• C)net income
• D)revenues earned

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Definitions:

Positive Economic Profits

Earnings that exceed the total costs, including both the explicit and implicit costs of a business.

Expand

To increase the scale, scope, or size of something, often used in the context of business growth or economic expansion.

Increasing-cost Industry

An industry in which production costs increase as output expands, often due to scarce resources or rising input prices.

Long-run Equilibrium

The condition in which all factors of production can be adjusted, leading to a situation where no firm in the industry wishes to change its output.