Drawings

question 35

Multiple Choice

Drawings

• A)are advances to a partnership.
• B)are loans to a partnership.
• C)are a function of interest on partnership average capital.
• D)are the same nature as withdrawals.

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Definitions:

Interest Annually

The amount of interest earned or paid over a one-year period.

Debt to Assets Ratio

A financial ratio that indicates the percentage of a company's assets financed by debt.

Current Assets

Resources anticipated to be turned into cash, disposed of, or utilized within a year or during the operational cycle, whichever period extends further.

Total Liabilities

The combined amount of obligations a company owes to external parties, including loans, accounts payable, mortgages, deferred revenues, and accrued expenses.