The Withdrawal of Cash for Personal Use by the Owners

question 83

Multiple Choice

The withdrawal of cash for personal use by the owners of a business requires a ________ to the drawings account and a ____________ to the cash account.

• A) debit; debit
• B) debit; credit
• C) credit; credit
• D) credit; debit

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Definitions:

Merchandising Income Statement

A financial statement detailing the gross profit, expenses, and net profit or loss of a retail or wholesale business.

Administrative Expenses

Overheads and general expenses related to the day-to-day management and operation of a business, excluding production and direct costs.

Operating Income

The profit realized from a business's core operations, excluding revenue from investments and costs such as interest expenses and taxes.

Cost Of Goods Sold

The specific costs tied to the production of goods sold by a company, which include the cost of materials and labor.