Increases in the Owner's Drawing Account Are Recorded with Debits

question 82

True/False

Increases in the owner's drawing account are recorded with debits.

---

Definitions:

Price-Taker Firm

A business that has no control over the market price of its products and must accept the prevailing market price.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and opportunity costs.

Opportunity Cost

The highest valued alternative that must be sacrificed as a result of choosing an option.