D. Hoffman withdrew $20,000 for personal use from his business. This transaction should be recorded as a(n):

Name: D. Hoffman withdrew $20,000 for personal use from his business. This transaction should be recorded as a(n):
Brand: Quizplus
Rating: 4.8 (59 reviews)

Question

Quizplus · Accepted Answer

Withdrawing money from the business as personal use reduces the amount of funds that the owner has invested in the business. This, in turn, reduces the owner's equity in the business. Therefore, the transaction is recorded as a decrease in owner's equity.

D Hoffman Withdrew $20,000 for Personal Use from His Business