Which of the Following Are Signs of Debt Problems

question 20

Multiple Choice

Which of the following are signs of debt problems?

• A)foreclosure proceedings.
• B)overdue payments.
• C)approaching credit limits.
• D)A and B are correct.
• E)A, B and C are correct.

---

Definitions:

Owner's Drawings

Funds taken out of a business by the owner in a sole proprietorship or partnership for individual purposes.

Capital Account

An account showing the net worth of a business at a specific point in time, comprised of the owner's equity, investments, and retained earnings.

Correcting Entry

A journal entry made to amend a previously recorded incorrect transaction in the financial records.

Accounts Receivable

Refers to the money owed to a company by its customers for goods or services sold on credit.