If an Owner Makes a Withdrawal of Cash from a Proprietorship

question 106

Multiple Choice

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

• A) there has been a violation of accounting principles.
• B) assets will decrease and owner's equity will increase.
• C) assets will decrease and owner's equity will decrease.
• D) assets will decrease and liabilities will increase.

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Definitions:

Construct Validity

The extent to which a selection tool measures a theoretical construct or trait

Concurrent Validity

The extent to which the results of a particular test or measurement correspond to those of a previously established test or measurement conducted at the same time.

Content Validity

A measure of whether a test or tool covers a comprehensive range of relevant aspects of the subject it aims to assess.

Work Samples

Pieces of work or projects used to demonstrate an individual's skills, abilities, and experience in a particular area or profession.