Question



Which of the following is true about withdrawal (distribution)? The withdrawal (distribution) account is a contra-equity acco
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer is The withdrawal (Distribution) account is a contra-equity account and has a normal debit balance.

Explanation:

The withdrawals accounts includes all the cash or other withdrawals made by the owner or partner during the period. Therefore, it is considered as contra account to capital and is deducted from the capital account.

Add a comment
Know the answer?
Add Answer to:
Which of the following is true about withdrawal (distribution)? The withdrawal (distribution) account is a contra-equity...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Treasury stock is classified as: A. An asset account B. A contra asset account C. A...

    Treasury stock is classified as: A. An asset account B. A contra asset account C. A contra equity account D. A liability account Prior period adjustments are reported in the: A. Multiple-step income statement B. Balance sheet C. Statement of retained earnings D. Statement of cash flows Changes in accounting estimates are: A. Considered accounting errors B. Accounted for with a cumulative "catch-up" adjustment C. Extraordinary items D. Accounted for in current and future periods The Discount on Bonds Payable...

  • The purpose of a long-term asset contra account is to: Select one: a. Reduce the asset,...

    The purpose of a long-term asset contra account is to: Select one: a. Reduce the asset, but at the same time not affecting owner’s equity b. Use it as a temporary account c. Present a higher net income d. Always reflect the original value (historical cost) of the asset on the balance sheet

  • QUESTION 9 Allowance for Doubtful Accounts: a contra asset account True False 5 points QUESTION 10...

    QUESTION 9 Allowance for Doubtful Accounts: a contra asset account True False 5 points QUESTION 10 Bonded employee: An employee who handles cash transactions, and is insured by the employer against any losses that may be done by that employee (such as theft). True False QUESTION 11 Petty cash journal entry used to start the fund: Debit: Cash Credit: Petty Cash True False 5 points Sverwer QUESTION 12 In a bank reconciliation: the adjusted bank balance and the adjusted book...

  • Which of the following is true about the Accumulated Other Comprehensive Income account? It is a...

    Which of the following is true about the Accumulated Other Comprehensive Income account? It is a liability account. It is an equity account. It is an asset account. It is a contra-asset account.

  • 39. Cash was paid by Janer's Cleaning Service to creditors on account. Which of the following...

    39. Cash was paid by Janer's Cleaning Service to creditors on account. Which of the following entries for Janer's Cleaning Service records this transaction? a. Cash, debit; Debbi Janer, Capital, credit b. Accounts Payable, debit; Cash, credit c. Accounts Receivable, debit; Cash, credit d. Accounts Payable, debit; Accounts Receivable, credit 40. Which of the following statements is not true about liabilities? a. Liabilities are debts owed to outsiders. b. Account titles of liabilities often include the term "payable." c. Cash...

  • Question 1 Which of the following is NOT true about the Balance Sheet? The balance sheet...

    Question 1 Which of the following is NOT true about the Balance Sheet? The balance sheet shows Assets O The balance sheet shows retained earnings The balance sheet shows that total assets equals to liabilities plus equity Deferred revenue is NOT an item on the balance sheet. Which of the following statement is NOT true? O Current Assets are assets that can be converted into cash in a year or less O Current liabilities are liabilities that needs to be...

  • 7. A credit is not the normal balance for which account listed below? a. Common Stock...

    7. A credit is not the normal balance for which account listed below? a. Common Stock account b. Revenue account c. Liability account d. Dividends account A) 8. Purrfect Pets, Inc. makes a $10,000 payment on account. This would result in a: $10,000 credit to Cash and a $10,000 credit to Accounts Payable. $10,000 debit to Cash and a $10,000 debit to Accounts Payable. $10,000 debit to Accounts Payable and a $10,000 credit to Cash. $10,000 debit to Cash and...

  • Which of the following accounts is an owner's equity account? Cash Accounts Payable Prepaid Insurance Ross...

    Which of the following accounts is an owner's equity account? Cash Accounts Payable Prepaid Insurance Ross Morris, Capital 2. The gross increases in owner's equity attributable to business activities are called a. assets b. liabilities c. revenues d. expenses 3. The debit side of an account a. depends on whether the account is an asset, liability, or owner's equity b. can be either side of the account depending on how the accountant set up the system c. is the right...

  • Which of the following is NOT true about financial statements?

    5.Which of the following is NOT true about financial statements?the balance sheet reports the financial position of a business at a particular point in timethe income statement reports the net cash received during the period as a result of operating activitiesthe statement of cash flows reports the inflows and outflows of cash for the periodthe statement of stockholders' equity includes information about net income and dividends for the period6.Which of the following best describes the purpose of the balance sheet?summarize...

  • 1. For each of the following (1) identify the type of account as an asset, liability,...

    1. For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, and (2) identify the normal balance of the account (debit or credit and the financial statement that the account is listed on (Income Statement or Balance Sheet) Normal balance (debit or credit) Financial statement Account title Account type Asset Cash Prepaid insurance Accounts payable Common stock Utilities expense Land Service revenue Notes receivable Advertising expense Unearned revenue Debit Balance sheet

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT