Chapter 1, Problem 6BE

To determine

Owner’s Drawings: Owner’s drawings refer to the withdrawal of cash invested in the business of the personal use by the owner of business. Owner’s drawings decrease the balance of owner’s equity.

Revenues: Revenues refer to that amount which is earned by rendering services or by selling the goods to the customers after deducting the amounts of discounts and returns.

Expenses: Expenses refer to that amount of costs which is incurred by an organization in order to run the business.

To Determine: Whether the given item is owner’s drawings, revenue or expense.