Accounting!!! Does Drawing affect your net Income?

Question

I am in Accounting I and I can not figure if what the Owner withdraw affects the companys net income!

I am Leaning to the idea that it doesnot but I am doing these questions and there are 5 in a row that ask to determine the net income and on each the assets and liabilities don't change but the owners investing a withdrawls do. So I have been suspisious of trick questions.

Answer 1

No.. the income is the same.. what it will effct is cashflow..the money the Owner draws for him/her self is not available for payables or purchasing..

Answer 2

confident wages are costs to pay to workers, subsequently that could be a criminal accountability. components equivalent liabilities plus proprietor's fairness. it is that the enterprise additionally has to pay the owner to boot as that is workers. Liabilities, and vendors fairness bills the two have a credit stability, subsequently making them a criminal accountability. A cost account is an asset account having a debit stability. this potential the cost won is an asset. Asset would desire to be paid for. the owner buys products to make a income and the staff are working for pay. once you subtract the gross sales/liabilities from cost/components, then you definitely have a benefit or loss.