A Regular Withdrawal of Cash by the Owner from the Business

question 49

Multiple Choice

A regular withdrawal of cash by the owner from the business is treated as a reduction in equity and is recorded in an account called:

• A) petty cash.
• B) drawings.
• C) debtors.
• D) borrowings.

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Definitions:

National Government

The organization responsible for governing a nation, typically composed of executive, legislative, and judicial branches.

Barron v. Baltimore

An 1833 United States Supreme Court case that held the Bill of Rights restricted only the federal government and not state governments, underscoring the federalism principle.

Nationalization

The process of transforming private assets into public assets by bringing them under the public ownership of a national government.

Takings Clause

Refers to a provision in the Fifth Amendment of the U.S. Constitution that prohibits the government from taking private property for public use without just compensation.