An Owner Withdrawal of $20,000 Cash Would

question 163

Multiple Choice

An owner withdrawal of $20,000 cash would:

• A)decrease owner's equity and increase assets by $20,000.
• B)increase owner's equity and decrease liabilities by $20,000.
• C)increase liabilities and assets by $20,000.
• D)decrease assets and owner's equity by $20,000.

---

Definitions:

Net Taxes

Net taxes are the total taxes paid to the government after subtracting transfers and subsidies received from the government.

Real GDP

The calculation of a nation's economic productivity accounting for variations in prices, such as inflation or deflation, to represent the true worth of its produced goods and services.

Classical Economists

A group of economists in the late 18th and early 19th centuries who believed in the idea of self-regulating markets, emphasizing free competition and minimal government intervention.

Full Employment

A state in an economy where all existing labor forces are deployed in the utmost efficient manner.