Accounting for IGCSE & O level - Final Statements (Section 10 - No. 42)
If a company has a net loss for the year, what is the effect on owner's equity?
Owner's equity increases
Owner's equity decreases
Owner's equity remains the same
It affects retained earnings only.
ব্যাখ্যা
A net loss reduces retained earnings, which is a component of owner's equity.