When the owner withdraws cash for personal use,
A)assets decrease and owner's equity decreases.
B)assets decrease and owner's equity increases.
C)assets decrease and expenses increase.
D)owner's equity decreases and revenue decreases.

Question

Quizplus · Accepted Answer

Withdrawing cash for personal use reduces the amount of assets available in the business, which decreases owner's equity since the money has been taken out for personal use and is no longer considered part of the business's assets.

When the Owner Withdraws Cash for Personal Use