Asked by Anupama Balaji on Apr 25, 2024
Verified
Which of the following will decrease Owner's Equity?
A) A sale of merchandise
B) The purchase of an asset on credit
C) An investment by the owner
D) A withdrawal by the owner
Owner's Equity
The residual interest in the assets of a company after deducting liabilities, representing the ownership's value in the business.
Merchandise
Goods that are purchased for resale at a profit as part of a business's retail operations.
Withdrawal
The act of removing funds from an account, or the act of removing capital from a business by its owner.
- Comprehend the impact of transactions on Owner's Equity.
Verified Answer
HM
Hussein MasriApr 28, 2024
Final Answer :
D
Explanation :
A withdrawal by the owner directly reduces the owner's equity because it represents money or assets taken out of the business by the owner for personal use.
Learning Objectives
- Comprehend the impact of transactions on Owner's Equity.
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