The Owner Withdraws Inventory for His Own Use from the Business.To

question 30

Multiple Choice

The owner withdraws inventory for his own use from the business.To which financial statement assumption does this relate?

• A) Materiality
• B) Monetary
• C) Accounting period
• D) Accounting entity

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Definitions:

Pre-Tax Cost

The cost of a service or product before taxes are taken into account.

Debt-Equity Ratio

A company's financial risk measure calculated by dividing all debts by the equity held by shareholders.

Net Present Value

A calculation that represents the difference between the present value of cash inflows and the present value of cash outflows over a period of time.