If an Owner Makes a Withdrawal of Cash from a Proprietorship

question 138

Multiple Choice

If an owner makes a withdrawal of cash from a proprietorship then

• A) there has been a violation of accounting principles.
• B) owner's equity will increase.
• C) owner's equity will decrease.
• D) there will be a new liability showing the owner owes money to the business.

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Definitions:

Mass Production

The manufacturing of large quantities of standardized products, often using assembly lines or automated technologies.

Mass Consumption

A pattern of economic growth where a large portion of the population engages in the purchase and consumption of goods and services in significant quantities.

Henry Ford

Henry Ford was an American industrialist and founder of the Ford Motor Company, known for revolutionizing the automobile industry with the introduction of assembly line manufacturing techniques.

19th Century

The period from January 1, 1801, to December 31, 1900, characterized by significant industrial, cultural, and political changes globally.