increases in temporary capital accounts result in an increase or a decrease in owner's equity?
true
what are you asking? be more spacific
Increases in temporary capital accounts can result in either an increase or a decrease in owner's equity. Temporary capital accounts, such as revenue and expense accounts, are used to track the financial activity during a particular accounting period.
If the revenues (temporary capital account) are greater than the expenses (temporary capital account), then there will be a net income for the period. Net income increases owner's equity, so an increase in temporary capital accounts will result in an increase in owner's equity.
On the other hand, if the expenses (temporary capital account) exceed the revenues (temporary capital account), there will be a net loss for the period. Net loss decreases owner's equity, so an increase in temporary capital accounts will result in a decrease in owner's equity.
To determine the impact on owner's equity, you would need to examine the specific amounts recorded in the temporary capital accounts for the period and calculate the net income or net loss.