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Question
Total amount of goods and services withdrawn by the proprietor for self use is known as ____________ .
Total amount of goods and services withdrawn by the proprietor for self use is known as ____________ .
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Solution
The correct option is B Drawings
Withdrawal of money and/or goods by the owner from the business for personal use is known as drawings. Drawings reduces the investment of the owners. It is maintained to track money withdrawn from a business. A drawing account is used primarily for businesses that are taxed as sole proprietorship's or partnerships. Owner withdrawals from businesses that are taxed as separate entities must generally be accounted for as either compensation or dividends.
Withdrawal of money and/or goods by the owner from the business for personal use is known as drawings. Drawings reduces the investment of the owners. It is maintained to track money withdrawn from a business. A drawing account is used primarily for businesses that are taxed as sole proprietorship's or partnerships. Owner withdrawals from businesses that are taxed as separate entities must generally be accounted for as either compensation or dividends.
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