Asked by kevin fuller on May 01, 2024
Verified
As Withdrawals increase:
A) Cash decreases.
B) Owner's Equity increases.
C) Cash increases.
D) Expense increases.
Withdrawals
The act of taking out funds from a bank account or the removal of assets from a business by the owner for personal use.
Owner's Equity
Represents the share of the company's assets that belongs to the owners after all debts have been paid.
Cash
Cash refers to money in the form of currency, including coins and banknotes, that can be used immediately for transactions.
- Comprehend how transactions influence the owner’s equity and the process involved in preparing the statement of owner's equity.
Verified Answer
IT
Ismael TorresMay 02, 2024
Final Answer :
A
Explanation :
Withdrawals by the owner from the business result in a decrease in cash because the business is using its cash to pay the owner.
Learning Objectives
- Comprehend how transactions influence the owner’s equity and the process involved in preparing the statement of owner's equity.
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