Cash withdrawn by owner personal for use is an example of _________.

Increase in Asset & Owner's liability

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Decrease in Asset & Owner's liability

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Increase in Liability & Owner's liability

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Decrease in Liability & Increase in Owner's liability

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Increase in Liability & Decrease in Owner's liability

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Solution

The correct option is A Decrease in Asset & Owner's liability
Here, Cash is an Asset which is an asset and its is being withdrawn which will result in decrease in capital
Decrease in Asset & Owner's liability.

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Similar questions

Q. Which of the following, equations properly represents a derivation of the fundamental accounting equation?
(a) Assets + Liabilities = Owner Equity
(b) Asset = Owner Equity
(c) Cash = Assets
(d) Assets - Liabilities = Owner Equity

Q. A summary record of the changes in a particular asset, liability or owners equity is known as _________.

Q. If the owners equity is Rs.

80, 000

and external liability Rs.

40, 000

, Cash in hand Rs.

20, 000

, the other assets of the firm will be ____________.

Q. An obligation of the entity to owners is treated as a liability in the balance sheet according to __________.

Give an example for each of the following types of transaction.
(i) Increase in one asset, decrease in another asset.
(ii) Increase in asset, increase in liability.
(iii) Increase in asset, increase in owner's capital.
(iv) Decrease in asset, decrease in liability.
(v) Decrease in asset, decrease in owner's capital.
(vi) Decrease in liabilities, increase in owner's capital.
(vii) Increase in one liability, decrease in another liability.
(viii) Increase in liabilities, decrease in owner's capital.

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Cash withdrawn by owner personal for use is an example of _________.

The correct option is A Decrease in Asset & Owner's liabilityHere, Cash is an Asset which is an asset and its is being withdrawn which will result in decrease in capitalDecrease in Asset & Owner's liability.

The correct option is A Decrease in Asset & Owner's liability
Here, Cash is an Asset which is an asset and its is being withdrawn which will result in decrease in capital
Decrease in Asset & Owner's liability.