Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 2 - No. 45)
What is the impact of a sales return on the accounting equation?
Increases assets, decreases owner's equity.
Decreases assets, decreases owner's equity.
Increases assets, increases owner's equity.
Decreases assets, increases owner's equity.
Explanation
A sales return decreases revenue and increases expenses, leading to a decrease in both assets and owner's equity.
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