Depreciation
Drawings
Outflow of cash
Appreciation
Answer is Right!
Answer is Wrong!
The correct answer is B. Drawings.
Drawings are the withdrawals of cash and goods by the owner of the business for his/her personal use. They are recorded in the owner’s equity account as a decrease.
Depreciation is the allocation of the cost of an asset over its useful life. It is recorded as an expense in the income statement.
Outflow of cash is any decrease in cash and cash equivalents. It can be caused by a variety of factors, such as payments to suppliers, employees, and creditors.
Appreciation is an increase in the value of an asset. It is not recorded in the financial statements.
I hope this helps! Let me know if you have any other questions.