Which of the Following Will Decrease Owner's Equity

question 22

Multiple Choice

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

---

Definitions:

Technological Advance

The development and application of innovative processes, equipment, or software that enhances productivity, efficiency, or quality.

Farmers

Individuals or entities engaged in the activity of agriculture, which includes the cultivation of plants and rearing of animals for food, fiber, biofuel, medicines, and other products used to sustain and enhance human life.

Optimal Allocation

The most efficient distribution of resources within an economy to maximize the output or welfare.

MB = MC

A principle in economics indicating the optimal level of output or consumption, where the marginal benefit (MB) equals the marginal cost (MC).