The terms "account" and "ledger" are the same and may be used interchangeably.

Here are the answers to your questions:

Question 1:
The terms "account" and "ledger" are not the same. An account is a record of financial transactions for a specific item (like cash or sales), while a ledger is a collection of all accounts. Therefore, they cannot be used interchangeably.

• False

Question 2:
Drawings (or owner's withdrawals) are funds or assets taken by the owner for personal use. They reduce owner's equity and are reported on the statement of owner's equity, not the income statement. The income statement reports revenues and expenses.

• False

Question 3:
Drawings occur when an owner takes assets from the business for personal use. Using company equipment for personal use is an example of the owner benefiting personally from a company asset, which is a form of drawing.

• True