What is the primary purpose of setting up separate accounts for revenue and expenses?

• To make classifying information easier

• To increase owner's equity

• To record owner's investments

• To reduce accounting periods

Which of the following decreases owner's equity?

• Revenue

• Owner's withdrawals

• Owner's investments

• Accounting periods

The life of a business is divided into periods of time called ___ periods.

What happens at the end of an accounting period?

• The period is closed and a new one starts

• Owner's equity is recalculated

• Revenue and expenses are ignored

• Transactions are deleted

Revenue earned by the business ___ owner's equity.