Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

A sole trader takes goods out for personal use. In what way does this change his financial statements?

  • Aincome statement: decrease closing inventories; statement of financial position: decrease drawings
  • Bincome statement: decrease cost of goods sold; statement of financial position: increase drawings
  • Cincome statement: increase cost of goods sold; statement of financial position: decrease drawings
  • Dincome statement: increase sales revenue; statement of financial position: increase drawings

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