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.

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Definitions:

Consumerism

An economic and social system that promotes the continuous increase in the purchase and consumption of goods and services.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, driven by international trade and investment and aided by information technology.

Culture Diversification

The process by which a culture becomes more varied and complex through the incorporation of different ethnic, social, or cultural influences.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.