When an Owner Deposits Cash in an Account in the Name

question 28

Multiple Choice

When an owner deposits cash in an account in the name of the business, it is an increase to

• A)Cash and Accounts Receivable.
• B)Cash and Drawing.
• C)Cash and Capital.
• D)Cash and Accounts Payable.
• E)Cash and Rent Expense.

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Definitions:

Administrative Expense

Costs associated with the general administration of a business, including salaries of non-sales personnel, office supplies, and rent, not directly tied to production or sales.

Tenant-Days

A metric used in property management, representing the total number of days that tenants occupy a space within a specific period.

Planning Budget

A budget created for a particular level of activity; it can be adjusted over time as actual activity levels change.

Wages

Payments made to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.