Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

In what way would each of the following transactions change the owner’s equity of a sole trader? - paying the owner’s private motoring expenses from the business bank account - taking out a long-term loan to pay for the purchase of new business machinery

  • Adecrease; no effect
  • Bdecrease; increase
  • Cincrease; no effect
  • Dno effect; decrease

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