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:

Consumer Market

The marketplace where final goods or services are sold to individuals and households for personal use.

Explosive Growth

Rapid and extensive increase, often used to describe sudden population growth, economic expansion, or the spread of urban development.

Living Wage

A wage sufficient for a worker and their family to live on, covering basic needs such as housing, food, and healthcare, aimed at promoting fair labor practices.

American Standard

Often refers to a set of guidelines or specifications used in the United States for various products, practices, or measurements to ensure quality, safety, and efficiency.