Explanation WHAT IS THE EFFECT ON EQUITY WHEN A BUSINESS OWNER WITHDRAWS CASH FORPERSONAL USE?A) EQUITY INCREASESB) EQUITY DECREASESC) NO EFFECT ON EQUITYD) ASSETS INCREASE.

Option a: This option is incorrect because owner withdrawals decrease assets (cash) and equity…

Answered: WHAT IS THE EFFECT ON EQUITY WHEN A…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 5MCQ

See similar textbooks

Similar questions

What effect will the cash payment of an account payable have on the Balance Sheet? Group of answer choices Decrease an asset and decrease stockholders’ equity Decrease an asset and decrease a liability Increase an asset and increase a liability Increase one asset and decrease another asset
An investment of cash by stockholders into the business willa. decrease total assets.b. increase stockholders’ equity.c. have no effect on total assets.d. decrease total liabilities.
Which of the following type of transaction will NOT cause a business cash inflow?A. decrease in assets other than cash.B. increase in liabilities.C. decrease in liabilities.D. increase in owner’s equity.
The cash payment of an account payable will have the following impact on the accounting equation. Group of answer choices Decrease an asset and decrease a liability Increase one asset and decrease another asset Increase an asset and increase a liability Decrease an asset and decrease stockholders’ equity
Which of the following decrease owner's equity or stockholder's equity? A. Paying cash to vendors. B. Paying cash to clients. C. Revenue. D. Expenses.
Which of the following transactions would result in an increase in capital employed? A. Paying a trade payable in cash B. Writing off a bad debt C. Purchasing on credit D. Repaying a loan E. Selling inventory at a profit F. Increasing the bank overdraft to purchase a non - current asset
What happens when an owner withdraws cash for personal use? Onothing, because the cash is not for business use O owner's equity increases O owner's equity decreases O liabilities increase
What types of transactions reduce owners equity? What types of transactions reduce retained earnings? What do they have in common?
Which of the following represents a source of cash in the investing section? A. sale of investments B. depreciation expense C. decrease in accounts receivable D. decrease in bonds payable
Exchanges of assets for assets have what effect on equity? A. increase equity B. may have no impact on equity C. decrease equity D. There is no relationship between assets and equity.
Assets are a.always lower than liabilities b.equal to liabilities less stockholders' equity c.the same as expenses because they are acquired with cash d.financed by the stockholders and/or creditors
can you please help me with the question in the photo for homework

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

Century 21 Accounting Multicolumn Journal

Accounting

ISBN:

9781337679503

Author:

Gilbertson

Publisher:

Cengage

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

Century 21 Accounting Multicolumn Journal

Accounting

ISBN:

9781337679503

Author:

Gilbertson

Publisher:

Cengage

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

SEE MORE TEXTBOOKS

WHAT IS THE EFFECT ON EQUITY WHEN A BUSINESS OWNER WITHDRAWS CASH FOR PERSONAL USE? A) EQUITY INCREASES B) EQUITY DECREASES C) NO EFFECT ON EQUITY D) ASSETS INCREASE.