O-LevelAccountingThe fundamentals of accounting7707/12 · Oct/Nov 2021 · Q201 Mark

A sole trader paid off the business's overdraft using his own personal funds. How did this affect the statement of financial position? [Figure showing table with liabilities, capital, and assets columns]

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Ano effect increase increase

Bdecrease increase increase

Cdecrease increase no effect

Ddecrease no effect increase

✓ Correct answer

C: decrease increase no effect

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Topic: The fundamentals of accounting, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2021 Paper 1 Variant 2, question 20.

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A sole trader paid off the business's overdraft using his own personal funds. How did this affect the statement of financial position? [Figure showing table with liabilities, capital, and assets columns]

✓ Correct answer

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About this question

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