Cash withdrawn by the owner of an unincorporated business in the form of a monthly salary should be treated as an expense of the business.

Name: Cash withdrawn by the owner of an unincorporated business in the form of a monthly salary should be treated as an expense of the business.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In an unincorporated business, cash withdrawn by the owner (often referred to as drawings) is not treated as an expense but rather as a reduction in the owner's equity in the business.

Cash Withdrawn by the Owner of an Unincorporated Business in the Form