Practice mode Accounting

An increase in which item decreases the capital of a business?

Correct answer C. Drawings

Explanation

Drawings are amounts withdrawn by the owner for personal use, so they reduce the owner's capital, while income, gains and fresh capital increase it.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.