Vidyalelo
Commerce · Q362

Accounting

Graduate and Post Graduate · Commerce · question 362

Q362

Drawing is a type of

A.
Expense
B.
Withdrawal of capital
Answer
C.
Income
D.
None of the above

Answer: Option B

Solution

Answer: Option B
Solution:
Drawing is a type of Withdrawal of capital. An owner's drawing affects the capital account of a balance sheet, whereas a withdrawal has no such effect.