Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 20 - No. 10)
Which of the following scenarios would NOT increase owner's equity?
The owner invests cash into the business.
The business performs services for a customer and receives cash.
The business pays rent expense.
The business sells inventory on credit.
Explanation
Expenses decrease equity. Payments of expenses lower owner’s equity.
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