A Proprietor Makes a Cash Withdrawal from the Proprietorship

question 32

Multiple Choice

A proprietor makes a cash withdrawal from the proprietorship.How does this affect the accounting equation?

• A) This has no effect on assets, liabilities, or owner's equity.
• B) Assets decrease; owner's equity decreases.
• C) Assets increase; liabilities decrease.
• D) Assets decrease; owner's equity increases.

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Definitions:

Market Research

The process of gathering, analyzing, and interpreting information about a market, including about its potential customers.

Clinical Use

The application of tools, treatments, or practices within a healthcare setting for diagnosing or treating patients.

Personality Theory

A framework or system that attempts to explain the variations in individuals' thoughts, feelings, and behaviors by analyzing personality aspects.

Europe, Canada

Refers to the continent of Europe and the country of Canada, respectively, often mentioned in contexts comparing cultural, economic, or political aspects.