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Drawings always adjusted with the capital of a business entity.
is this statement right ?
answer me first of all in yes or no .
please don't give any furthering about it.?
is this statement right ?
answer me first of all in yes or no .
please don't give any furthering about it.?
Most Upvoted Answer
Drawings always adjusted with the capital of a business entity. is thi...
Answer:
Explanation:
- Drawings are withdrawals of assets by the owner of a business for personal use and are not considered as business expenses or salaries.
- Drawings are recorded in the owner's equity section of the balance sheet and decrease the owner's equity in the business.
- Adjustments to drawings are made to ensure that the amount withdrawn by the owner is accurately reflected in the financial statements.
- The capital of a business entity represents the owner's investment in the business.
- Any adjustments to drawings will impact the owner's equity in the business, which is directly linked to the capital of the business entity.
- Therefore, drawings are always adjusted with the capital of a business entity to maintain accurate financial reporting and reflect the true financial position of the business.
Explanation:
- Drawings are withdrawals of assets by the owner of a business for personal use and are not considered as business expenses or salaries.
- Drawings are recorded in the owner's equity section of the balance sheet and decrease the owner's equity in the business.
- Adjustments to drawings are made to ensure that the amount withdrawn by the owner is accurately reflected in the financial statements.
- The capital of a business entity represents the owner's investment in the business.
- Any adjustments to drawings will impact the owner's equity in the business, which is directly linked to the capital of the business entity.
- Therefore, drawings are always adjusted with the capital of a business entity to maintain accurate financial reporting and reflect the true financial position of the business.
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Drawings always adjusted with the capital of a business entity. is this statement right ?answer me first of all in yes or no .please don't give any furthering about it.?
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Drawings always adjusted with the capital of a business entity. is this statement right ?answer me first of all in yes or no .please don't give any furthering about it.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Drawings always adjusted with the capital of a business entity. is this statement right ?answer me first of all in yes or no .please don't give any furthering about it.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Drawings always adjusted with the capital of a business entity. is this statement right ?answer me first of all in yes or no .please don't give any furthering about it.?.
Drawings always adjusted with the capital of a business entity. is this statement right ?answer me first of all in yes or no .please don't give any furthering about it.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Drawings always adjusted with the capital of a business entity. is this statement right ?answer me first of all in yes or no .please don't give any furthering about it.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Drawings always adjusted with the capital of a business entity. is this statement right ?answer me first of all in yes or no .please don't give any furthering about it.?.
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