If Taylor Willow,the Sole Stockholder of Willow Hardware,uses Cash of the Business

question 14

Multiple Choice

If Taylor Willow,the sole stockholder of Willow Hardware,uses cash of the business to purchase a family automobile,the business should record this use of cash with an entry to:

• A)Debit Salary Expense and credit Cash.
• B)Debit Cash and credit Salary Expense.
• C)Debit Cash and credit Dividends.
• D)Debit Dividends and credit Cash.
• E)Debit Automobiles and credit Cash.

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Definitions:

Release

To allow or enable escape from confinement; in legal terms, it can involve the relinquishing of a right or claim.

Hang-gliding

An air sport where a pilot flies a light and non-motorized foot-launchable aircraft called a hang glider.

Responsible

Having an obligation to do something, or having control over or care for someone, as part of one's job or role.

Waiver

The voluntary relinquishment or surrender of a right, claim, or privilege.