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.

Comments (0)

Advertisement