The owner makes a withdrawal from Aventis Company.How does this transaction affect the accounting equation?
A)The assets,liabilities,and equity remain the same.
B)The assets decrease and equity decreases.
C)The assets increase and liabilities decrease.
D)The assets decrease and equity increases.

Question

Quizplus · Accepted Answer

When the owner makes a withdrawal, it decreases the company's assets (cash or other assets withdrawn) and also decreases the owner's equity, as it is a distribution of the company's resources to the owner.

The Owner Makes a Withdrawal from Aventis Company