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Sophia Guastucci
on Nov 15, 2024

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Which of the following entries records the owner taking cash for personal use?

A) Wage Expense, debit; Cash, credit
B) Capital, debit; Cash, credit
C) Withdrawals, debit; Cash, credit
D) No entry is necessary since this is a personal transaction.

Withdrawals

Withdrawals refer to the amounts of money or other assets taken from a business by its owner(s) for personal use.

Wage Expense

Wage expense is the total amount of wages and salaries paid to employees by a company during a specific period of time.

Personal Use

The use of a company's assets for the owner's or employees' personal benefits, which can affect the taxable income of the business if not properly accounted for.

  • Acquire knowledge on the effect of transactions on owner’s equity and the development of the statement of owner's equity.
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Pengabdi ExcelNov 19, 2024
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