The entry to record payment of cash to the owner as a withdrawal of equity is
A) debit Cash, credit Drawing.
B) debit Drawing, credit Cash.
C) debit Cash, credit Accounts Payable.
D) none of these.

Question

Quizplus · Accepted Answer

The correct entry to record payment of cash to the owner as a withdrawal of equity is to debit Drawing and credit Cash. This reflects a decrease in the company's cash asset and a decrease in the owner's equity through the drawing account.

The Entry to Record Payment of Cash to the Owner