Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 28 - No. 36)
Which of the following actions can affect the owner's equity?
Revenue is earned.
Expenses are incurred.
Cash is paid to suppliers.
Owner withdraws cash.
Explanation
Revenues increase, and expenses and owner withdrawals decrease the owner's equity. Payments to suppliers affect assets and liabilities, but don't directly impact equity.
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