Which of the following transactions would cause an asset to decrease and the Owner's Equity to decrease?

A) The owner invested cash in the business.
B) The business incurred an Expense on credit.
C) The business bought supplies on account.
D) None of the above.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, essentially representing the owner's claim against the company's assets.

Expense

The outflow of resources such as cash and other valuables, incurred in the process of generating revenues.

Supplies

Materials and items used in the operation of a business but not directly tied to a final product or service.