As Withdrawals increase,
A) Owner's Equity decreases.
B) Owner's Equity increases.
C) Cash increases.
D) Expense increases.

Name: As Withdrawals increase, A) Owner's Equity decreases. B) Owner's Equity increases. C) Cash increases. D) Expense increases.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Withdrawals are a reduction of the company's assets, which in turn reduces the owner's equity. Therefore, as withdrawals increase, owner's equity decreases.

As Withdrawals Increase