Question: Which statement is correct? 1. A drawing is an expense for the company. 2. A drawing is a reduction of a privately- owned companys equity.

Which statement is correct?

1. A drawing is an expense for the company.

2. A drawing is a reduction of a privately-

owned company’s equity.

3. A drawing is a withdrawal from the company’s bank account.

4. Using company assets is not a drawing.

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