Which of the following will decrease owner's equity?
A)An exchange of assets
B)The purchase of an asset on credit
C)An investment by the owner
D)A withdrawal by the owner

Name: Which of the following will decrease owner's equity? A)An exchange of assets B)The purchase of an asset on credit C)An investment by the owner D)A withdrawal by the owner
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Question

Quizplus · Accepted Answer

When the owner withdraws money from the business, it reduces the amount of assets in the business and, therefore, decreases the owner's equity.

Which of the Following Will Decrease Owner's Equity