The Withdrawals Account Is

question 118

Multiple Choice

The Withdrawals account is

• A) a revenue, and it has a normal debit balance.
• B) an expense, and it has a normal credit balance.
• C) a liability, and it has a normal debit balance.
• D) an owner's equity component, and it has a normal debit balance.

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Definitions:

Net Wealth

The total value of all financial and non-financial assets owned by an individual or company minus the total of all its outstanding liabilities.

Consumption

The process by which goods and services are used up or utilized, reflecting household spending.

Saving

The process of setting aside a portion of current income for future use.

Income Level

The amount of money earned or received by an individual or household over a certain period.