Asked by Yesenia Gomez on Apr 30, 2024
Verified
If an owner withdraws cash for personal use the transaction should be recorded in the
A) sales journal.
B) cash receipts journal.
C) general journal.
D) cash payments journal.
Owner Withdraws
Transactions where the owner of a sole proprietorship takes out cash or other assets from the business for personal use.
General Journal
A comprehensive record where all financial transactions of a business are originally entered before being transferred to specific accounts in the general ledger.
Cash Payments Journal
A financial journal that records all cash payments or outflows of a business.
- Establish the correct journal for recording nuanced types of transactions.
- Acknowledge the importance and mechanism of the general journal throughout the accounting cycle.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
D
Explanation :
Withdrawing cash for personal use is a payment made by the owner, therefore it should be recorded in the cash payments journal.
Learning Objectives
- Establish the correct journal for recording nuanced types of transactions.
- Acknowledge the importance and mechanism of the general journal throughout the accounting cycle.