Questions: Multiple Select Question Select all that apply Given the accounts below, choose all that affect equity. (Check all answers that apply.) Expenses Accounts Payable Owner's Capital Revenues Cash Owner's Investments Owner's Withdrawals

The answers are:

• Expenses
• Owner's Capital
• Revenues
• Owner's Investments
• Owner's Withdrawals

Explanation for each option:

1. Expenses: Correct. Expenses decrease equity because they represent the costs incurred by the business in its operations, which reduce the net income and, consequently, the owner's equity.

2. Accounts Payable: Incorrect. Accounts payable is a liability account, representing amounts the business owes to suppliers or creditors. It does not directly affect equity.

3. Owner's Capital: Correct. Owner's capital represents the owner's initial and additional investments in the business. It directly increases equity.

4. Revenues: Correct. Revenues increase equity because they represent the income earned from the business's operations, which increases the net income and, consequently, the owner's equity.

5. Cash: Incorrect. Cash is an asset account and does not directly affect equity. It represents the liquid funds available to the business.

6. Owner's Investments: Correct. Owner's investments increase equity because they represent additional funds or assets the owner contributes to the business.

7. Owner's Withdrawals: Correct. Owner's withdrawals (also known as drawings) decrease equity because they represent the amounts the owner takes out of the business for personal use, reducing the total equity.