Cash Is Used to Pay for a Car for Personal

question 72

Multiple Choice

Cash is used to pay for a car for personal use by the owner.The transaction includes

• A) debiting Cash and crediting Drawing.
• B) debiting Drawing and crediting Cash.
• C) debiting Capital and crediting Cash.
• D) debiting Car Expense and crediting Cash.

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Definitions:

Dividend Revenue

Dividend revenue refers to the income earned by investors or companies from holding shares of other entities that pay dividends.

Significant Influence

Refers to the power to participate in the financial and operating policy decisions of another entity, without having full control over it.

Common Stock

It represents shares of ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted thereafter for the investor's share of the investee's profits or losses.