Mary Martin, the Owner of Martin Consulting, Withdrew $2,000 Cash

question 47

Short Answer

Mary Martin, the owner of Martin Consulting, withdrew $2,000 cash from the company for personal use. Identify the general journal entry below that Martin Consulting will make to record the transaction.
$$\begin{array}{l}\text { A) }\\\begin{array} { | l | r | r | } \hline \text { M. Martin, Capital } & 2,000 & \\\hline \text { Cash } & & 2,000 \\\hline\end{array}\end{array}$$
B)
$\begin{array}{|l|r|r|}\hline \text { M. Martin, Withdrawals } & 2,000 & \\\hline \text { M. Martin, Capital } & & 2,000 \\\hline\end{array}$
C)
$\begin{array}{|l|r|r|}\hline \text { Cash } & 2,000 & \\\hline \text { M. Martin, Withdrawals } & & 2,000 \\\hline\end{array}$
D)
$\begin{array}{|l|r|r|}\hline \text { Cash } & 2,000 & \\\hline \text { M. Martin, Capital } & & 2,000 \\\hline\end{array}$
E)
$\begin{array}{|l|r|r|}\hline \text { M. Martin, Withdrawals } & 2,000 & \\\hline \text { Cash } & & 2,000 \\\hline\end{array}$

Comprehend the intertemporal budget constraint and its implications for consumption over time.

Recognize how the inflation rate influences real income and consumption choices.

Understand how utility functions reflect consumer preferences for current versus future consumption.

Learn about the substitution effect and income effect of changes in interest rates on consumption patterns.

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Definitions:

Production Function

A mathematical model that describes the relationship between inputs used in production and the output of goods or services.

Constant Returns

A situation in which the rate of increase in output is directly proportional to the increase in inputs in the production process.

Scale

The size or level of operation, indicating the scope or extent of something, often used in discussions of production or economic activities.

Production Function

An economic model that describes how output is created by varying inputs of production like labor and capital.