Chuck Taylor withdrew $6,000 in cash for his personal use from his business. This amount should be included as an expense on the income statement.

Name: Chuck Taylor withdrew $6,000 in cash for his personal use from his business. This amount should be included as an expense on the income statement.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Withdrawing cash for personal use is not considered an expense on the income statement. It is recorded as a reduction of owner's equity on the balance sheet.

Chuck Taylor Withdrew $6,000 in Cash for His Personal Use