Which accounts are affected when the owner withdraws cash from the business?
A) Assets and Withdrawals
B) Liabilities and Capital
C) Assets and Liabilities
D) None of the above is correct.

Question

Quizplus · Accepted Answer

When the owner withdraws cash from the business, it decreases the business's assets (cash) and increases the owner's withdrawals, which is a contra equity account reflecting amounts taken out of the business by the owner.

Which Accounts Are Affected When the Owner Withdraws Cash from the Business