Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 22 - No. 33)
What is the effect of owner's drawings on the statement of financial position?
Increases assets and equity.
Decreases assets and equity.
Increases assets and decreases equity.
Decreases liabilities and equity.
Explanation
Drawings decrease both owner's equity and the business's assets (usually cash).
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