Two physical therapists own a partnership and receive draws each month for the medical services they provided. The draws should be recorded as business expenses.

Name: Two physical therapists own a partnership and receive draws each month for the medical services they provided. The draws should be recorded as business expenses.
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Question

Quizplus · Accepted Answer

Draws to owners are considered owner withdrawals and should be recorded as a reduction of equity, not as a business expense.

Two Physical Therapists Own a Partnership and Receive Draws Each