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Analysis of Financial Statements — Accountancy STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceAccountancyAnalysis of Financial Statements1 Mark
Question
On sale of old furniture, owner's equity would ______________.
  1. Increase
  2. Decrease
  3. Remain unchanged
  4. May or may not change
✓

Answer

  1. May or may not change
Explanation:

The sale of furniture may result in a profit that will increase the owner's equity or a loss that will decrease it. It may also happen that the furniture is sold at its book value so that neither profit nor loss occurs and the owner's equity remains same.

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