Which of the Following Transactions Would Cause an Asset to Increase

question 23

Multiple Choice

Which of the following transactions would cause an asset to increase and the owner's equity to increase?

• A) The owner invested cash in the business.
• B) The business incurred an expense on credit.
• C) The business bought supplies on account.
• D) The owner withdrew cash from the business.

---

Definitions:

Secondary Process Thinking

A concept in psychoanalytic theory referring to the rational and conscious thought processes guided by reality.

Internalization

The process of incorporating the beliefs, attitudes, or values of others into one's own belief system.

Moral Standards

Rules or principles governing what is considered right or wrong behavior.

Superego

In Sigmund Freud’s theory, the internalization of the moral standards of society inculcated by the child’s parents.