What is the result if the amount of Net Income for the year is less than the amount of the Owner's Withdrawals?
A)Owner's Name, Capital increases
B)Cash balance decreases
C)Cash balance increases
D)Owner's Name, Capital decreases

Question

Quizplus · Accepted Answer

If the amount of Net Income for the year is less than the amount of the Owner's Withdrawals, it means the business has operated at a loss. As a result, the Owner's Name, Capital decreases, reflecting the loss.

What Is the Result If the Amount of Net Income