In a proprietorship, owner’s investments and revenues increase owner’s equity.
Investments by Owner. Investments by owner are the assets the owner puts
into the business.These investments increase owner’s equity.They are recorded in
a category called owner’s capital.
Revenues. Revenues are the gross increase in owner’s equity resulting from
business activities entered into for the purpose of earning income. Generally, revenues
result from selling merchandise, performing services, renting property, and
lending money. Common sources of revenue are sales, fees, services, commissions,
interest, dividends, royalties, and rent.
Revenues usually result in an increase in an asset.They may arise from different
sources and are called various names depending on the nature of the business.
Campus Pizza, for instance,
Investments by Owner. Investments by owner are the assets the owner puts
into the business.These investments increase owner’s equity.They are recorded in
a category called owner’s capital.
Revenues. Revenues are the gross increase in owner’s equity resulting from
business activities entered into for the purpose of earning income. Generally, revenues
result from selling merchandise, performing services, renting property, and
lending money. Common sources of revenue are sales, fees, services, commissions,
interest, dividends, royalties, and rent.
Revenues usually result in an increase in an asset.They may arise from different
sources and are called various names depending on the nature of the business.
Campus Pizza, for instance,
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