What would be the effect on accounts if the owner withdrew cash?
A) An asset would be debited and an expense credited.
B) Withdrawals would be debited and an asset credited.
C) An asset would be debited and a revenue credited.
D) An asset would be debited and Capital credited.

Question

Quizplus · Accepted Answer

When the owner withdraws cash, it is considered a withdrawal of personal funds from the company. Therefore, the Withdrawals account (which is a temporary capital account) is debited, and the Cash account (which is an asset account) is credited to reflect the decrease in cash.

What Would Be the Effect on Accounts If the Owner