Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 19 - No. 38)
What does a debit to 'drawings' represent?
An increase in owner's equity.
A decrease in owner's equity.
An increase in assets.
A decrease in liabilities.
Explanation
Drawings are the distributions of the business's assets to the owner, which reduces owner's equity.
Comments (0)
