The owner must absorb the cost of doing business. There has to be some effect. Another Question Go to Table of Contents 8a. Revenue only records what the business earns for what it is in business to do. Another Question Go to Table of Contents 8b.
Withdrawals just records what the owner takes out of the business for personal use.
Another Question Go to Table of Contents 8c. Another Question Go to Table of Contents 9a. This is what it was sometimes called many years ago. It was descriptive but a shorter name is used now. Another Question Go to Table of Contents 9b.