All else held constant, the book value of owners' equity will decrease when

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14-01-2018
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All else held constant, the book value of owners' equity will decrease when

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Erudite1 Erudite1 · Answer 1 · 2018-01-25T22:41:05+01:00

Erudite1 Erudite1

25-01-2018

All else held constant, the book value of owners' equity will decrease when DIVIDENDS EXCEED NET INCOME FOR A PERIOD.
In sole proprietorship, owner's equity refers to the value obtained when owner's withdrawal from a business and his net income is subtracted from owner's investment in a business. Owner's equity represent the book value of a company.

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