Q3 Summative Test 3

What type of account is drawing?

• Asset

• Capital

• Expense

• Income

What does withdraw mean?

• A. Invest cash in the business

  B. Borrow cash from the bank

• A. Invest cash in the business

  B. Borrow cash from the bank

• Pay liability to debtor of the business

  D. The owner get cash for personal use

• Pay liability to debtor of the business

  D. The owner get cash for personal use

Which item is recorded in the debit column?

• Cash

• Drawing

• P 5,000

• Withdrew cash.

In a journal entry dated Feb. 7, 2018, which item is NOT written in the date

column?

• 2018

• 7

• P 5,000

• Feb.

Where do we record Drawing when it increases?

• Credit

• Date

• Debit

• Explanation

Which item is the account debited?

• Cash

• Macapagal, Drawing

• supplies

• withdrew cash

Which item is the account credited?

• Cash

• Macapagal, Drawing

• Supplies

• Withdrew cash.

Which item is the explanation for the business transaction dated February 7?

• Cash

• Macapagal, Drawing

• Paid water expense

• Withdrew cash

What happens to cash when the owner withdrew cash?

• Cash decreases

• Cash increases

• No effect on cash

• None of the above

Where does the drawing is recorded when the owner withdrew cash?

• Credit

• Debit

• Both debit and credit

• It will not be recorded