Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 27 - No. 28)
Which of the following statements are true regarding the use of drawings?
They decrease owner's equity.
They represent payments made to suppliers.
They are used for owner's personal expenses.
They are recorded as an expense
Explanation
Drawings represent withdrawals of assets from the business for personal use, thereby reducing owner's equity.
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