The Effect on the Balance Sheet When the Owner Withdraws

question 20

Multiple Choice

The effect on the balance sheet when the owner withdraws money from the business is:

• A) decrease asset bank; decrease equity.
• B) increase drawings; increase equity.
• C) decrease asset bank; increase equity.
• D) decrease drawings; decrease equity.

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Definitions:

Club Fungi

A group of fungi characterized by the production of spores on club-shaped structures called basidia.

Fruiting Body

The reproductive structure produced by certain fungi and plants, designed for spore dissemination.

Mushroom

A type of fungus characterized by a cap on a stem, producing spores beneath the cap, and known for a variety of shapes, sizes, and colors.

Extracellular Digestion

The breakdown of food outside cells, typically seen in simple organisms or in certain animal digestive systems.