The Effect on the Statement of Financial Position When the Owner

question 59

Multiple Choice

The effect on the statement of financial position when the owner withdraws money from the business is:

• A)decrease asset bank; decrease equity.
• B)decrease drawings; decrease equity.
• C)increase drawings; increase equity.
• D)decrease asset bank; increase equity.

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Definitions:

Availability Heuristic

A fast-track cognitive process that uses the earliest examples coming to mind for a person when evaluating a unique topic, concept, practice, or choice.

Gambler's Fallacy

The inaccurate belief that when something is happening more frequently than is typical during a particular time, it will subsequently happen less frequently, or the other way around.

Maladaptiveness

A trait or behavior that is counterproductive to an individual's well-being or ability to meet demands of the environment.

Incompetence

The lack of ability, qualification, or capacity to perform a specified job or task effectively.