4.05 Statement of Owner's Equity

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Capital Accounts Increase or Decrease

For the following actions, tell if it will increase or decrease the Capital account.

1. Owner invests money
   1. Increase
   2. Decrease

   Answer: a. Increase

2. Owner withdraws money
   1. Increase
   2. Decrease

   Answer: b. Decrease

3. Net Income
   1. Increase
   2. Decrease

   Answer: a. Increase

4. Net Loss
   1. Increase
   2. Decrease

   Answer: b. Decrease