Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 10 - No. 42)
What is the effect on the accounting equation when a business owner takes money out of the business for personal use?
Assets increase, Equity increases
Assets decrease, Equity increases
Assets increase, Equity decreases
Assets decrease, Equity decreases
Explanation
When a business owner takes money out of the business for personal use, the cash decreases(assets) and owner's equity also decreases.
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