What is owner distribution is what kind of account?

Owner distribution is the process of distributing profits or dividends to the owners of a company. This usually involves transferring funds from the company's operating account to the personal accounts of the owners or shareholders.

This type of account is typically categorized as an equity account on the company's balance sheet, representing the portion of profits that is allocated to the owners. It is not considered an expense, as it does not impact the company's income statement.

Owner distribution can be made in different forms, such as cash payments, stock dividends, or retained earnings. The purpose of owner distribution is to reward the owners for their investment in the company and provide them with a return on their ownership stake.