Accounting Week 7 P2 Explore

What is a withdrawal in the context of a business?

• A transaction that increases owner's equity

• An expense for business operations

• Cash or assets taken by the owner for personal use

• A type of business investment

Tags

Understanding

How does a withdrawal affect the accounting equation?

• Increases assets and owner's equity

• Decreases assets and owner's equity

• Increases expenses and decreases assets

• Has no effect on the accounting equation

Tags

Understanding

A withdrawal decreases both assets and ___.

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Understanding

What is the impact of a withdrawal on owner's equity?

• It increases owner's equity

• It has no impact on owner's equity

• It decreases owner's equity

• It converts owner's equity to assets

Tags

Understanding