Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 2 - No. 8)

What is the impact of the 'Drawings' on the statement of financial position?
Increases owner's equity
Decreases owner's equity
Increases liabilities
Decreases assets and liabilities

Explanation

Drawings is the owner taking money or goods from the business for personal use, which reduces the equity.

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