Accounting for IGCSE & O level - Final Statements (Section 7 - No. 47)
If a business has a net loss, how does that affect the owner's capital account?
Increases the capital
Decreases the capital
Has no effect on capital
Increases the owner's drawings.
הֶסבֵּר
A net loss will reduce the retained earnings, and as a result, the owner's equity will decrease.