Commerce Exam > Commerce Questions > Goods/Assets or Cash used for personal use by...
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Goods/Assets or Cash used for personal use by a businessman is called______
- a)Investment
- b)Capital
- c)Drawings
- d)Profit
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Goods/Assets or Cash used for personal use by a businessman is called_...
When a businessman uses goods, assets, or cash from the business for personal use, it is termed as "drawings." Drawings are not business expenses; instead, they represent the owner's personal use of business resources and are subtracted from the owner's equity in the business. Drawings can include money, goods, or other assets withdrawn from the business by the owner.
Most Upvoted Answer
Goods/Assets or Cash used for personal use by a businessman is called_...
Drawings in Business
Drawings are the goods/assets or cash used for personal use by a businessman. It is the amount of cash or goods withdrawn from the business by the owner or partner for personal use. These withdrawals reduce the capital of the business and are not treated as an expense.
Example: If the owner of a business withdraws $5000 cash from the business for personal use, it is known as drawings.
Drawings are not considered as an expense because they are not incurred to generate revenue. It is a personal withdrawal of capital from the business for personal use.
Importance of Drawings in Business
Drawings are important for the following reasons:
1. Helps in determining the net profit of the business.
2. Helps in determining the capital of the business.
3. Helps in determining the financial position of the business.
4. Helps in determining the tax liability of the business.
Conclusion
Drawings are the goods/assets or cash used for personal use by a businessman. It is a personal withdrawal of capital from the business for personal use. Drawings are not considered as an expense because they are not incurred to generate revenue. It helps in determining the net profit, capital, financial position, and tax liability of the business.
Drawings are the goods/assets or cash used for personal use by a businessman. It is the amount of cash or goods withdrawn from the business by the owner or partner for personal use. These withdrawals reduce the capital of the business and are not treated as an expense.
Example: If the owner of a business withdraws $5000 cash from the business for personal use, it is known as drawings.
Drawings are not considered as an expense because they are not incurred to generate revenue. It is a personal withdrawal of capital from the business for personal use.
Importance of Drawings in Business
Drawings are important for the following reasons:
1. Helps in determining the net profit of the business.
2. Helps in determining the capital of the business.
3. Helps in determining the financial position of the business.
4. Helps in determining the tax liability of the business.
Conclusion
Drawings are the goods/assets or cash used for personal use by a businessman. It is a personal withdrawal of capital from the business for personal use. Drawings are not considered as an expense because they are not incurred to generate revenue. It helps in determining the net profit, capital, financial position, and tax liability of the business.
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Community Answer
Goods/Assets or Cash used for personal use by a businessman is called_...
Drawing means taking out the assests of business for personal use . it means whenever a businessman take out some cash or assests etc. for personal is known as drawing. *just remember anything for personal use*
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Goods/Assets or Cash used for personal use by a businessman is called______a)Investmentb)Capitalc)Drawingsd)ProfitCorrect answer is option 'C'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Goods/Assets or Cash used for personal use by a businessman is called______a)Investmentb)Capitalc)Drawingsd)ProfitCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods/Assets or Cash used for personal use by a businessman is called______a)Investmentb)Capitalc)Drawingsd)ProfitCorrect answer is option 'C'. Can you explain this answer?.
Goods/Assets or Cash used for personal use by a businessman is called______a)Investmentb)Capitalc)Drawingsd)ProfitCorrect answer is option 'C'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Goods/Assets or Cash used for personal use by a businessman is called______a)Investmentb)Capitalc)Drawingsd)ProfitCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods/Assets or Cash used for personal use by a businessman is called______a)Investmentb)Capitalc)Drawingsd)ProfitCorrect answer is option 'C'. Can you explain this answer?.
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