Final answer:
Cash withdrawn by the owner of an unincorporated business as a monthly salary is not an expense but a draw from the owner's equity, making the statement false.
Step-by-step explanation:
Cash withdrawn by the owner of an unincorporated business as a monthly salary is not treated as an expense of the business. This type of withdrawal is known as draws or owner's drawings, which represents a portion of the business's earnings taken out by the owner for personal use. Unlike salaries paid to employees, which are business expenses, owner's withdrawals do not appear on the business expense sheet as they are considered distributions of the owner's equity in the company. Therefore, the statement that cash withdrawn by the owner of an unincorporated business in the form of a monthly salary should be treated as an expense is false.