Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 15 - No. 37)
What is the impact of a sole trader taking cash from the business for personal use?
Increases assets and decreases owner's equity.
Decreases assets and increases owner's equity.
Decreases assets and decreases owner's equity.
Increases liabilities and decreases owner's equity.
Explanation
The business's cash (asset) decreases, and the owner's capital (equity) decreases.
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