If Tim Jones, the Owner of Jones Hardware Proprietorship, Uses

question 79

Multiple Choice

If Tim Jones, the owner of Jones Hardware proprietorship, uses cash of the business to purchase a family automobile, the business should record this use of cash with an entry to:

• A) Debit Salary Expense and credit Cash.
• B) Debit Tim Jones, Salary and credit Cash.
• C) Debit Cash and credit Tim Jones, Withdrawals.
• D) Debit Tim Jones, Withdrawals and credit Cash.
• E) Debit Automobiles and credit Cash.

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Definitions:

Dutch Auction

is a bidding strategy where the price of an item is lowered until it gets a bid, the first bid made is the winning offer.

Market Value

The ongoing purchase or sale price of an asset or service.

Firm Commitment Underwriting

A type of underwriting where the underwriter buys the entire offering from the issuer and sells it to investors, assuming full financial risk.