Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 25 - No. 25)
What is the impact of a withdrawal by the owner of cash from the business?
Increases assets and increases owner's equity.
Decreases assets and increases owner's equity.
Decreases assets and decreases owner's equity.
Increases assets and decreases owner's equity.
Explanation
Drawings reduce both the assets (cash) and the owner's equity.
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