If Expenses, in a Proprietorship, Are Paid in Cash, Then

question 89

Multiple Choice

If expenses, in a proprietorship, are paid in cash, then

• A) assets will increase.
• B) liabilities will decrease.
• C) owner's equity will increase.
• D) assets will decrease.

---

Definitions:

Profit

Profit is the financial return or gain achieved from an investment or business venture after subtracting all expenses and costs.

Equilibrium Price

The price at which the quantity of a good or service supplied matches the quantity demanded, leading to market balance.

Competitive Price-Taker

A firm or individual that has no influence over the market price and must accept the prevailing market price for its product or input.

Profit

The financial gain made in a transaction or operation, calculated as the difference between the revenue earned and the costs incurred.