Which of the following will have a direct affect on the Statement of owner's equity?
A) Buying an automobile on account
B) Withdrawing money from the business
C) Receiving money on account
D) Selling goods on account

Question

Quizplus · Accepted Answer

Withdrawing money from the business will decrease the owner's equity, thereby affecting the Statement of owner's equity directly. The other options will affect the income statement and balance sheet indirectly but not the Statement of owner's equity.

Which of the Following Will Have a Direct Affect on the Statement