Withdrawals by the Owner for Personal Use Do Not Affect

question 37

True/False

Withdrawals by the owner for personal use do not affect net income or net loss of the business.

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Definitions:

Terms 2/10, N/30

Terms 2/10, N/30 are payment terms indicating that a buyer can take a 2% discount on the invoice price if the payment is made within 10 days; otherwise, the net amount is due within 30 days.

Merchandise Inventory

Goods that a company holds for sale to customers, considered an asset on the balance sheet.

Perpetual Inventory Method

An inventory accounting system that records the sale or purchase of inventory in real-time through the use of computerized point-of-sale systems and enterprise asset management software.