When an owner withdraws cash from the business, the transaction affects both assets and owner's equity.

Name: When an owner withdraws cash from the business, the transaction affects both assets and owner's equity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When an owner withdraws cash from the business, it decreases the business's assets (cash) and also decreases the owner's equity, since the withdrawal is essentially the owner taking out part of their claim or investment in the business.

When an Owner Withdraws Cash from the Business, the Transaction