The owner's capital account decreases with ________.
A) net income
B) the purchase of long-term assets
C) the owner's contributions
D) the owner's withdrawals

Question

Quizplus · Accepted Answer

The owner's capital account represents the owner's investment in the business. When the owner makes withdrawals, the capital account decreases as the money is being taken out of the business. Net income, long-term asset purchases, and owner contributions increase the owner's capital account.

The Owner's Capital Account Decreases with ________