The Owner's Equity Will Be Reduced by All of the Following

question 13

Multiple Choice

The owner's equity will be reduced by all of the following accounts except:

• A) Revenues
• B) Expenses
• C) Drawing account
• D) All are true.

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Definitions:

Intersegment Sales

Intersegment sales refer to transactions where one segment of a company sells goods or services to another segment of the same company, affecting intra-company revenues but not consolidated revenues.

Capital Expenditures

Payments made by a company to acquire or significantly improve the capacity or capabilities of long-term assets.

Interest Revenue

Income earned by an entity from lending money or making investments that bear interest.

Reportable Segments

These are components of a business where separate financial information is available and is reviewed regularly by the operating decision maker for the purpose of resource allocation and performance assessment.