Which of the following financial statements shows the owner's withdrawals?
A) Income statement
B) Statement of owner's equity
C) Budgeted balance sheet
D) Balance sheet

Question

Quizplus · Accepted Answer

The Statement of Owner's Equity shows the beginning balance of owner's equity, any investments made by the owner, net income or loss, and any withdrawals made by the owner during the period. Therefore, the statement shows the owner's withdrawals. The Income Statement shows revenues, expenses, and net income or loss. The Budgeted Balance Sheet and Balance Sheet show assets, liabilities, and owner's equity, but they do not specifically show the owner's withdrawals.

Which of the Following Financial Statements Shows the Owner's Withdrawals