When an Owner Makes a Withdrawal

question 113

Multiple Choice

When an owner makes a withdrawal,

• A) it could be another asset other than cash.
• B) the owner's drawings account will be increased with a credit.
• C) the owner's capital account will be directly increased with a debit.
• D) the owner's drawings account will be decreased with a debit.

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Definitions:

Prosperous

Characterized by financial success and good fortune; thriving or flourishing economically.

Rationalizing

The process of providing logical or reasonable explanations for decisions, behaviors, or beliefs, often after the fact.

Goodwill

The positive reputation and favorable relationships a business secures with its stakeholders, reflecting intangible assets like brand value.