Which of the following is the correct ending to the next sentence? When an owner makes a withdrawal of an asset for personal use...* Owner's Equity will be decreasing with a debit to Drawings. O the Drawings account will "increase" with a credit. O the Drawings account will be "decreased" with a debit. O the Capital account will be directly increased with a debit.

Which of the following is the correct ending to the next sentence? When an owner makes a withdrawal of an asset for personal use...* Owner's Equity will be decreasing with a debit to Drawings. O the Drawings account will "increase" with a credit. O the Drawings account will be "decreased" with a debit. O the Capital account will be directly increased with a debit.

Name: Which of the following is the correct ending to the next sentence? Wh
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Which of the following is the correct ending to the next sentence? When anowner makes a withdrawal of an asset for personal use... *Owner's Equity will be decreasing with a debit to Drawings.O the Drawings account will "increase" with a credit.O the

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter4: Journalizing And Posting Transactions

Section: Chapter Questions

Problem 3MC: To purchase an asset such as office equipment on account, you would credit which account? (a) Cash...

See similar textbooks

Related questions

Q: A docs.google.com/forms choose the right answer Amount invested by the proprietor in the business…

A: The question is related to the multiple choice questions.

Q: The changes in the _______ are reported in the statement of changes in owner's equity.…

A: The objective of the question is to identify which account changes are reported in the statement of…

Q: I'm enrolled in Accounting I, and I am having problems understanding whether a debit or credit…

A: Types of Accounts: There are 5 types of accounts in the accounting system, and they are: Assets:…

Q: Multiple choice: 1. Purchasing office equipment on account would: A. decrease owner’s equity B.…

A: Purchases on account means credit purchases

Q: Which of the following does not decrease Owner's equity? owner's withdrawals. owner's drawings.…

A: Owners equity is the total amount or value that is being attributable or belongs to the owners of…

Q: Identify the best definition. Talking about the balance sheet , the equation "assets - liabilities =…

A: There is an accounting equation which says that assets should be equal to liabilities and equity.

Q: Capital Loss (MSS Loss) account is an expense account and increased by a credit. O a. False Ob. True

A: Capital loss is the loss that is incurred when the value decreases for the capital asset like real…

Q: Which of the following statements is false? Multiple Choice O Prepaid insurance is a liability…

A: Current assets are those that provide future economic benefits and are realizable within a time…

Q: Question 2 In each case state which concept or concepts are relevant to the situation given. a.…

A: Accounting transactions are recorded using the accrual basis, revenue recognition principle, asset…

Q: Which of the following statements is TRUE? * A business should credit Revenue when the business…

A: Accounting principles mean some generally accepted rules and guidelines arising out of assumptions…

Q: A debit entry will: Multiple Choice increase a liability account. increase an expense…

A: 1) Debit in asset, expenses and dividend accounts increases asset, expenses and dividends. 2) Credit…

Q: What happens when a business purchases insurance with cash? O assets both increase and decrease O…

A: Purchase of insurance is essential for businesses to avoid the unforeseeable huge loss due to…

Q: As prepaid expenses expire with the passage of time, the correct adjusting entry will be a O debit…

A: A prepaid expense is an expense which is paid for more than one accounting period.

Q: A credit may represent a(n): increase in an asset account. increase in a liability account. decrease…

A: Debit Amounts:Accounts having typical debit balances include, for example:Cash, receivables,…

Q: The effect of payment made to creditors of the business would be O a. Decrease an asset and decrease…

A: An Payment of any liability will lead to decrease in asset and decrease in liability

Q: What two transaction types decrease owner's equity? liabilities and revenue O expenses and…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: If expenses are paid in cash, then Select one: a. assets will decrease b. liabilities will decrease…

A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received…

Q: B. Create the income statement. Use minus sign to indicate the loss. C. Create the statement of…

A: Financial statements are those statements which are prepared at the end of accounting period in…

Q: XYZ paid rent expense in cash. With respect to this event, indicate whether the following statement…

A: When XYZ pays their rental obligations in cash, they do not add to their existing debt burden in any…

Q: when the owner withdraws cash from his business, what would be the entry O no entry O debit owners…

A: Drawings ( owners withdrawal ) is the opposite of Owner's capital. Capital is a nature of credit…

Q: The normal balance of an account is the side of the account (either the debit side or the credit…

A: Every account has a normal balance of a positive value. Assets positive value is debit side.…

Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

Topic Video

Question

Which of the following is the correct ending to the next sentence? When an
owner makes a withdrawal of an asset for personal use... *
Owner's Equity will be decreasing with a debit to Drawings.
O the Drawings account will "increase" with a credit.
O the Drawings account will be "decreased" with a debit.
O the Capital account will be directly increased with a debit.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following decreases owners equity? A. investments by owners B. losses C. gains D. short-term loans
Which of the following will affect net income? O O Writing off an Account Receivable. Estimating bad debts at the end of the year Re-establishing and collection of an account that was previously written off. O All of the above transactions will affect net income.
Last option is: loss
A ____ will cause Accumulated Depreciation to decrease. A. Debit B. Credit
Which of the following accounts would increase owners equity? a. Cash b. Accounts Payable c. Accounts Receivable d. Income from Tutoring
N3 As a loan is paid down the homeowner aspires to having a market value which is more than the price that he paid for the property. What best describes the interest or value left after all liens and encumbrances have been paid? Avulsion Equity Leverage Tax shelter
Which one of these does not affect the cash flow to creditors? Multiple Choice O O Interest paid on long-term debt New mortgage on a building Increase in accounts payable Mortgage interest payment
1. Property owned by an individual? A. Liability B. Asset C. Property D. Net Worth 2.Examples of Liabilities include which of the following: A. Loans, credit cards, and real property B. Loans, mortgage, and credit cards C. Loans, Art collection, and savings account D. Mortgage, credit card, and real property 3.Positive Net Worth is defined as: A. assets are less that liabilities B. liabilities are greater than assets C.assets are equal to liabilities D.assets are greater than liabilities
Dd.15.
A credit may represent a(n): increase in an asset account. increase in a liability account. decrease in the capital account. increase in an expense account.
Payment to a creditor will Decreases an asset and decreases owner's equity Increases an asset and decreases another asset Decreases an asset and decreases a liability Decreases an asset and increases in liability
Question 2 In each case state which concept or concepts are relevant to the situation given. a. Subtracting an amount paid for insurance because it belongs to the next year. b. Maintain the same percentage rate of the provision for doubtful debts despite it not being always accurate in predicting future bade debts c. Valuing inventory at likely selling price for a successful business d. Valuing a non-current asset at its likely market value.