Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 41 - No. 38)

Which of the following transactions will increase an asset and also increase owner's equity?

Owner invests cash into the business

Owner withdraws cash from the business

Sale of goods for cash

Purchase of inventory on credit

Explanation

Owner investing cash increases both cash (asset) and owner's equity (capital). Selling goods for cash increases cash and sales revenue, which ultimately impacts owner's equity (through retained earnings)

Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 41 - No. 38)

Explanation

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