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Question

Decrease in owner's equity can be caused by _____________________.
  1. Withdrawal of cash for self use by the proprietor
  2. Withdrawal of goods for self use by the owner
  3. Payment of personal expenses of the proprietor by the business
  4. All the three

A
Withdrawal of goods for self use by the owner
B
All the three
C
Withdrawal of cash for self use by the proprietor
D
Payment of personal expenses of the proprietor by the business
Solution
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A decrease in owner's equity caused by a decrease in assets or an increase in liabilities resulting from the operations of business. Assets or cash taken out of a business for the owner's personal use. The account affected when receiving cash from the owner as an investment.

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