Future Profit - WHS Accounting

The Westwood Schools Introduction to Accounting Course taught by Mrs. Davis.

This is where we will post our daily topics of discussion and invite business leaders to contribute and share with the class as we learn about accounting.

Tuesday, September 05, 2006

Owner withdrawals

Employee salaries are soncsidered an expense that reduces the net income of a company. IF the owner widthdraws cash from the company its not considered an expense. A business owned by one person is called proprietorship. becuase the net income of a proprietorship is not affected by owner withdrawals the income tax paid by the owner is not affected by how much cash the owner withdrawsfrom the business.

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