The owner withdrawing cash for personal use would:
A)have no effect on assets.
B)decrease owner's equity.
C)decrease net income.
D)increase assets.

Question

Quizplus · Accepted Answer

When the owner withdraws cash for personal use, it is recorded as a drawing, which decreases the owner's equity. This action does not directly affect the net income or increase assets; instead, it reduces the owner's equity because the withdrawal is not a business expense but a distribution of equity.

The Owner Withdrawing Cash for Personal Use Would