Which of the following would result if the owner withdrew cash from the business?
A) Cash would increase and Capital would decrease.
B) Cash would increase and Withdrawals would increase.
C) Cash would decrease and Withdrawals would increase.
D) An investment by the owner is not a business transaction.

Question

Quizplus · Accepted Answer

When the owner withdraws cash from the business, the business's cash account decreases because money is being taken out. At the same time, the withdrawals account, which tracks the amount of money taken out of the business by the owner for personal use, increases. This reflects the decrease in business resources and the increase in owner's withdrawals.

Which of the Following Would Result If the Owner Withdrew