Rah54viz
Answered

do income result in decrease in equity?​

Sagot :

Princesspinky80viz

Answer:

However, net income is only one factor that can affect owner's equity in a company. Owner's equity can also increase if the owner of a business invests more money into the business. Similarly, it can decrease if the owner takes money out of the business.

Explanation:

Net income contributes to a company's assets and can therefore affect the book value, or owner's equity. ... On the flip side, if a company generates a profit but its costs of doing business exceed that profit, then the owner's equity generally decreases.