does withdrawls fall in the catergorie income statement.if not please correct. the other two choices are statement of changes in owner equity or balance sheet.

Withdrawals do not fall under the category of the income statement. The income statement, also known as the profit and loss statement or statement of comprehensive income, is a financial statement that reports a company's revenues, expenses, and net income or loss over a specific period.

Withdrawals by an owner or owners are transactions that involve taking money out of a business for personal use or other non-business purposes. These withdrawals are considered distributions of profits or capital, and they are typically recorded in either the statement of changes in owner's equity or the balance sheet.

The statement of changes in owner's equity is a financial statement that summarizes the changes in a company's owner's equity over a specific period. It includes transactions such as capital contributions, net income or loss, and withdrawals, among other items.

On the other hand, the balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It includes assets, liabilities, and owner's equity, including any withdrawals made by owners.

Therefore, in the context of financial statements, withdrawals are typically recorded in the statement of changes in owner's equity or reflected in the owner's equity section of the balance sheet.