_______ the withdrawal of cash and goods by the owner of the busienss for his/her personal use?
Correct answer: D. Drawings
- A. Depreciation
- B. Appreciation Hire Grant Writers
- C. Outflow of cash
- D. Drawings
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Drawings are cash, goods, or other assets withdrawn by the owner for personal use, reducing the owner's capital.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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