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Unformatted text preview: business
---The account title use in recording investment is
“Owner, Capital” 3. OWNER’S EQUITY
(2) Revenues – are the gross increase in owner’s equity
resulting from business activities entered into for the
purpose of earning income. Generally, revenue from
selling merchandise, performing services, renting
property and lending money. Common source of
revenue are sales, fees, services, commissions,
interest, dividends, royalties and rent.
interest, 3. OWNER’S EQUITY
Decreases in Owner’s Equity
(1) Drawings – an owner may withdrew cash or other
assets for personal use.
(2) Expenses – are the cost of assets consumed or
services used in the process of earning revenues
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This note was uploaded on 04/12/2013 for the course ACCOUNTING 1-3 taught by Professor Mr.arnoldcolle during the Spring '12 term at De La Salle University.
- Spring '12