The Drawing Account Should Be Used to Show

question 29

Multiple Choice

The drawing account should be used to show

• A) the amount the owner has invested in the business.
• B) the amount the owner has taken out of the business.
• C) the amount the business has earned.
• D) the amount the business has spent.

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Definitions:

Vertical Integration

Developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor.

JIT Partnerships

Just-In-Time partnerships; close collaborations between suppliers and companies to ensure timely delivery of parts, minimizing inventory.

Unnecessary Activities

Tasks or processes that do not add value or contribute positively to the end goal, often considered wasteful.

Engineering Changes

Modifications or updates made to a product's design or manufacturing process, often to improve functionality, performance, or production efficiency.