Rudy Rivers has withdrawn $750 from Rivers Computer Makeover Company's cash account to deposit in his personal account. How does this transaction affect Rivers Computer Makeover Company's accounting equation?
A. Increase Assets (accounts receivable) and decrease Assets (cash)
B. Decrease Assets (cash) and decrease Owner's Equity (Owner's Withdrawal)
C. Decrease Assets (cash) and decrease liabilities (account payable)
D. Increase Assets (cash) and decrease Owner's Equity (Owner's Withdrawal)
Ans: B. Decrease Assets (cash) and decrease Owner's Equity (Owner's Withdrawal)
Business
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