Drawings by a Partner or a Sole Trader from Their

question 43

Multiple Choice

Drawings by a partner or a sole trader from their business may be:

• A) cash taken out on a regular basis.
• B) the owner's personal bills paid by the business, e.g. children's school fees.
• C) goods taken for personal consumption.
• D) all of the above.

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Definitions:

Earnings Per Share

A metric for assessing a company's earnings, determined by dividing its net income by the total outstanding common stock shares.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, usually with fixed dividends.

Cumulative Preferred Stock

A type of preferred stock whose dividends accumulate if not paid in the agreed periods.

Par Value

The nominal or face value of a stock or bond as stated by the issuer, often used in the accounting of capital accounts.