Which of the following transactions would cause an asset to decrease and the owner's equity to decrease?
A)The owner invested cash in the business.
B)The business incurred an expense on credit.
C)The business bought supplies on account.
D)The owner withdrew cash from the business.

Question

Quizplus · Accepted Answer

When the owner withdraws cash from the business, the asset cash decreases as it is being removed from the business, and the owner's equity decreases because they are taking cash out of the business that they technically own.

Which of the Following Transactions Would Cause an Asset to Decrease