A Business Owner Took a Withdrawal

question 26

Multiple Choice

A business owner took a withdrawal. Which of the following would be TRUE?

• A)Total assets would increase.
• B)Profit would decrease.
• C)Owners' equity would decrease.
• D)There would be no effect on total assets.

---

Definitions:

Omission Bias

The tendency to favor inaction over action, based on the assumption that harm caused by doing nothing is less morally reprehensible than harm caused by acting.

Reactance

A psychological reaction that occurs when an individual feels their freedom to choose is being restricted, leading them to resist or do the opposite of what is being imposed.

Dissonance

A psychological conflict resulting from incongruous beliefs and attitudes held simultaneously.

Temporal Discounting

The tendency for people to value immediate rewards more highly than future rewards, often leading to impulsive decisions.