An owner of a business withdraws cash from his business.Which of the following accounts would need to be reduced to record this transaction?
A)accounts receivable
B)owner's equity
C)expenses
D)accounts payable

Question

Quizplus · Accepted Answer

Since the owner withdraws cash from the business, it means that the owner's equity account would be reduced as the owner's claim on the business has decreased.

An Owner of a Business Withdraws Cash from His Business