R Ronald Withdrew $50,000 from the Business

question 41

Multiple Choice

R. Ronald withdrew $50,000 from the business. This transaction should be recorded as a(n)

• A)increase to assets.
• B)decrease to owner's equity.
• C)increase to liabilities.
• D)increase to owner's equity.

---

Definitions:

Wholesalers

Merchants who buy goods from suppliers and manufacturers for sale to retailers.

Retailers

Merchants who buy goods from wholesalers for resale to customers.

Credit Terms

Conditions under which credit is extended by a seller to a buyer, detailing the repayment period, interest rate, and penalties for late payment.

Discount

A reduction in the price of goods or services, usually offered to encourage purchase or provided for early payment.