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:

Correlations

A quantitative measure revealing the connection in fluctuations among several variables.

Sensation

The process by which our sensory receptors and nervous system receive and represent stimuli from our environment.

Pain

A complex experience involving sensory and emotional components, resulting from actual or potential tissue damage.

Chronic

Describing a health condition or disease that is persistent or otherwise long-lasting in its effects.