Trinav Doley
Last answered:

11 Nov 2024

 Posted on:

06 Nov 2024
0

Debit and Credits

in Accounting and Financial Statement Analysis / Income Statement T-Accounts
How come cost in T-Account decreases equity?
1 answers ( 0 marked as helpful)
Ned Krastev
Instructor
Posted on:

11 Nov 2024
0
Hi Trinav,
If you add more costs to your P&L, then this reduces Net income, correct? if you experience a lower Net income, then this means Equity becomes lower too,right? Because part of Equity is Net income. This is the reasoning.
Best,
Ned  

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