The income statement of a proprietorship for the month of October indicates a net income of $158,250.

Question:

The income statement of a proprietorship for the month of October indicates a net income of $158,250. During the same period, the owner withdrew $180,000 in cash from the business for personal use.
Would it be correct to say that the business incurred a net loss of $21,750 during the month? Discuss.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting

ISBN: 978-0324188004

21st Edition

Authors: Carl s. warren, James m. reeve, Philip e. fess

Question Posted: