_______ the withdrawal of cash and goods by the owner of the busienss for his/her personal use?
Correct answer: B. Drawings
- A. Depreciation
- B. Drawings
- C. Outflow of cash
- D. Appreciation Hire Grant Writers
Explanation
Drawings are cash, goods, or other assets withdrawn by the owner for personal use, reducing the owner's capital. Depreciation instead records the decrease in value of a business asset.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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