A regular withdrawal of cash by the owner from the business is treated as a reduction in equity and is recorded in an account called:
A) creditors.
B) debtors.
C) drawings.
D) mortgage.

Question

Quizplus · Accepted Answer

A regular withdrawal of cash by the owner from the business is considered a reduction in equity, and it is recorded in an account called "drawing." Option A, B, and D are incorrect as they do not relate to the owner's withdrawal of cash.

A Regular Withdrawal of Cash by the Owner from the Business