The Net Income of Sarah for the Year Is $25,000

question 70

Multiple Choice

The Net Income of Sarah for the year is $25,000. The withdrawals Sarah made during the year amounted to $30,000. Which of the following statements is true of effect of these transactions on Sarah, Capital?

• A)Sarah, Capital account decreases by $25,000.
• B)Sarah, Capital account decreases by $5,000.
• C)Sarah, Capital account increases by $30,000.
• D)Sarah, Capital account increases by $25,000.

---

Definitions:

U.S. Farm Products

Goods produced by the agricultural sector in the United States, including crops, livestock, and dairy products.

Demand

The level of demand for a good or service based on consumers' readiness and financial ability to acquire it, at various price points, within a designated period.

Gross Income

The total income received before any deductions or taxes are subtracted.

Bumper Crop

An unusually large harvest of a crop, often leading to a decrease in prices due to increased supply.