A payment to an owner is called a(n):
A) Liability.
B) Withdrawal.
C) Expense.
D) Contribution.
E) Investment.

Question

Quizplus · Accepted Answer

A payment to an owner is considered a withdrawal, as it represents the owner taking funds out of the business for personal use or benefit. Liabilities are debts owed by the business, expenses are costs incurred in the operation of the business, contributions are funds added to the business by the owner or other investors, and investments are monetary commitments made to generate a financial return.

A Payment to an Owner Is Called A(n)