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Name: Drawings made by the owner of a business will _____.a.Increase one ass
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Description: Drawings made by the owner of a business will _____.a.Increase one asset and decrease other assetb.Decrease an asset and decrease liabilityc.Decrease an asset and decrease owner’s equityd.Increase an asset and increase a liability

Business

Accounting

Decrease an asset and decrease owner’s equity

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter1: Asset, Liability, Owner’s Equity, Revenue, And Expense Accounts

Section: Chapter Questions

Problem 4E: Describe a business transaction that will do the following: a. Increase an asset and increase a...

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Drawings made by the owner of a business will _____. a. Increase one asset and decrease other asset b. Decrease an asset and decrease liability c. Decrease an asset and decrease owner’s equity d. Increase an asset and increase a liability

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