5

Question 5 Which of the following transactions will cause the net worth/equity of the business to DECREASE? 1. Paying a dividend to shareholders 2. Making a 1 for 5 rights issue of shares 3. Increasing the provision for warranty claims 4. Making a 4 for 1 bonus/capitalisation issue of shares O 1 only 1 and 3 only O 1, 2 and 3 only O 3 and 4 only 1 and 4 only