Withdrawal of cash from a business by the owner for personal reasons will NOT affect which financial statement?

Question

Quizplus · Accepted Answer

The Income Statement reports a company's revenues and expenses and calculates net income or loss over a specific period. Withdrawals by the owner (drawings) are not considered a business expense and thus do not affect the Income Statement. They are transactions affecting the owner's equity and the cash position, impacting the Balance Sheet, Statement of Owner's Equity, and Cash Flow Statement.

Withdrawal of Cash from a Business by the Owner for Personal