Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 45 - No. 11)
Which of the following scenarios would *decrease* the owner's equity?
The owner invests cash into the business.
The business pays its employees' salaries.
The owner withdraws cash for personal use.
The business sells goods on credit.
Explanation
Paying employee salaries and the owner withdrawing cash both decrease equity.
Comments (0)
