A business owner withdraws $1000 from the business bank account for their own personal use.The effect of this transaction on the accounting equation is:

Question

Quizplus · Accepted Answer

This transaction decreases the asset (cash) because money is taken out of the business account, and it decreases equity because the owner's withdrawal represents a reduction in the owner's equity in the business.

A Business Owner Withdraws $1000 from the Business Bank Account