Asked by Terriona Hamilton on Jul 18, 2024
Verified
When an owner makes a withdrawal
A) it doesn't have to be cash it could be another asset.
B) the owner's drawings account will be increased with a credit.
C) the owner's capital account will be directly increased with a debit.
D) the owner's drawings account will be decreased with a debit.
Owner's Drawings
The act of an owner drawing funds from a business in a sole proprietorship or partnership for personal needs.
Capital Account
A capital account is a financial statement that shows the changes in a company’s assets, liabilities, and equity, or an individual part of a nation's balance of payments reflecting net change in ownership of national assets.
- Discern how transactions affect both the proprietor's equity and the company's net income.
Verified Answer
VA
Victor AndresitaJul 19, 2024
Final Answer :
A
Explanation :
When an owner makes a withdrawal, it can indeed be in the form of assets other than cash, such as inventory or equipment. This reflects the removal of assets from the business for personal use.
Learning Objectives
- Discern how transactions affect both the proprietor's equity and the company's net income.
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