Which of the Following Entries Records the Owner Taking Cash

question 57

Multiple Choice

Which of the following entries records the owner taking cash for personal use?

• A)Wage Expense,debit;Cash,credit
• B)Capital,debit;Cash,credit
• C)Withdrawals,debit;Cash,credit
• D)No entry is necessary since the owner owns the cash and the entire business.

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Definitions:

Dual Labor Market Theory

A theory suggesting the labor market is divided into two segments—the primary (high wage, good jobs) and the secondary (low wage, poor quality jobs) sectors.

Productivity Growth

The increase in the efficiency of production, measured by the amount of goods and services produced per unit of input.

Unionized Workers

Employees who are members of a union, which is an organized association formed to protect and further their rights and interests.

Substitution Effect

The economic understanding that as prices rise or income decreases, consumers will replace more expensive items with less costly alternatives.