Accounting for IGCSE & O level - Final Statements (Section 13 - No. 43)
Which of the following events will increase the net assets of a business?
An owner investing more cash into the business.
The business sells goods at a profit.
The business pays a dividend to the owner.
The business buys new equipment.
Explanation
Increased owner's investment increases cash and therefore increases net assets. Selling goods at a profit increases revenues (and therefore profit), and hence net assets.
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