Question

owner withdrawals cause a(n) (increase/decrease) in owner's equity and are recorded directly in owner's (capital/withdrawal/equity) .

Answer 1

Owner withdrawals cause a decrease in owner's equity and are recorded directly within the owner's withdrawal.

What is a withdrawal?

Withdrawals are variables in an economy that leak the circular flow of income and reduce the dimensions of national income. Withdrawals include savings, taxation, and imports.

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