When the Owner of a Sole Proprietorship Withdraws Assets from the Business

question 133

Multiple Choice

When the owner of a sole proprietorship withdraws assets from the business for personal use,

• A)it is treated like a noncash dividend.
• B)it is illegal because the assets belong to the separate entity,the proprietorship.
• C)it would be recorded as a loss by the proprietorship.
• D)it is recorded as a reduction of owner's equity.

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Definitions:

Distribution

Describes how the values of a variable are spread or distributed across different categories or intervals.

P > .05

Indicates that the probability of obtaining the observed data under the null hypothesis exceeds 5%, typically leading to failing to reject the null hypothesis.

Null Hypothesis

A hypothesis suggesting no significant difference or effect, serving as the default assumption to be tested against the alternative hypothesis.

Region

A specified area or division within a larger context, whether geographical, spatial, or conceptual, identified by certain characteristics or boundaries.