The Owner of a Business Paid Cash from His Personal

question 72

Multiple Choice

The owner of a business paid cash from his personal checking account to purchase an automobile for his personal use. This transaction:

• A)increased a liability account and increased liabilities.
• B)decreased cash and increased expenses.
• C)increased assets and increased owners' equity.
• D)is not a transaction recognized by the business.

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Definitions:

Resource Supplies

Resource supplies denote the available stock of materials, tools, and other assets that can be drawn on by a person or organization to function effectively.

Internal Customers

Refers to the employees or departments within an organization that depend on the work of another within the same organization.

Circuit Boards

Electronic components that provide a platform for mounting and interconnecting various electronic components through conductive tracks and pads.

Computer Manufacturing

The process of producing computer hardware, including assembly of component parts and the integration of software to create functional computing devices.