Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 14 - No. 27)
What impact do partners' drawings have on the partnership's net income?
They decrease net income.
They increase net income.
They have no impact on net income.
They affect only the partners' capital accounts.
Explanation
Drawings are withdrawals from capital; they do not affect the partnership's net income calculation.
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