What reduces the capital of owners
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A decrease in the owner’s equity can occur when a company loses money during the normal course of business and owners need to move equity into normal business operations. It also decreases when an owner withdraws money for personal use. A company might also suffer a decrease in equity because of some unusual event that requires owners to invest equity in replacing assets, such as when a natural disaster destroys equipment or inventory.
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it means it decreases when an owner uses money for her personal use it decreases owner equality and loses company fame
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