Answered: It represents the cash or other assets…

It represents the cash or other assets withdrawn from the business by the owner for the personal use. a. Drawings b. Dividends c. Equity d. Retained earnings

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 4MC

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Question

It represents the cash or other assets withdrawn from the business by the owner for the personal use. a. Drawings b. Dividends c. Equity d. Retained earnings

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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