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.

Understand the concepts of measures of dispersion (range, variance, standard deviation) and how they are used to describe data variability.

Recognize different statistical terms and their definitions (e.g., degrees of freedom, frequencies, z-score).

Know the difference between descriptive and inferential statistics.

Differentiate between different types of data (categorical vs. continuous) and understand why the distinction is important.

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Definitions:

Cash Payment

is the act of settling a transaction or discharging a debt by using physical currency or through a digital medium representing immediate value.

Internal Control Objectives

The goals aimed at ensuring the reliability of financial reporting, compliance with laws and regulations, and effectiveness of operations.

Financial Reports

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and statements of cash flows.

Applicable Laws

The set of relevant laws and regulations that apply within the jurisdiction of a business operation or transaction.