Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 37 - No. 35)
Which statement is accurate about the effect of an owner withdrawing cash from the business for personal use?
Assets increase and equity increases.
Assets decrease and equity decreases.
Assets increase and liabilities increase.
Assets decrease and liabilities decrease.
Explanation
The cash (asset) decreases, and the owner's equity (drawings) decreases.
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