The Proprietor of Martin Supply Service Took a $5,000 Cash

question 93

Multiple Choice

The proprietor of Martin Supply Service took a $5,000 cash withdrawal.What is the effect of the withdrawal on the accounts of the business?

• A) Cash account decreases; Owner's capital account decreases.
• B) Cash account increases; Accounts receivable decreases.
• C) Accounts payable increases; Owner's capital account decreases.
• D) Cash account increases; Owner's capital account decreases.

Analyze the effectiveness and drawbacks of the yardstick approach in structuring business reports.

Grasp the essentials of creating compelling proposals that address the client’s needs and challenges convincingly.

Understand the differences between solicited and unsolicited proposals.

Identify the primary purposes of internal proposals.

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Definitions:

Managing Receivables

The process of overseeing and collecting amounts owed to a company by its customers to ensure timely payments and maintain healthy cash flows.

Extended Credit

An arrangement allowing customers to purchase goods or services on account and pay for them at a later date, beyond the standard billing period.

Uncollectible Notes

Loans or promissory notes that have been deemed uncollectible by the creditor due to the borrower's inability to pay.

Bad Debts Expense

Bad debts expense represents the estimated amount of accounts receivable that a company does not expect to collect due to customers' inability to fulfill payment obligations.