The owner of a business paid personal rent with a company cheque. This payment reduces Cash as well as increases the expenses of the firm.

Name: The owner of a business paid personal rent with a company cheque. This payment reduces Cash as well as increases the expenses of the firm.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The payment reduces Cash but does not increase the expenses of the firm; it is recorded as a draw or withdrawal by the owner, not an expense of the business.

The Owner of a Business Paid Personal Rent with a Company