Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 39 - No. 5)
Which of the following is an example of a transaction that *decreases* owner's equity?
The owner invests cash in the business.
The business earns revenue.
The owner withdraws cash for personal use.
The business sells goods on credit.
Explanation
Withdrawals (drawings) directly reduce owner's equity.
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