A Business Owner Took a Withdrawal

question 91

Multiple Choice

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

• A) Net income would decrease.
• B) Total assets would increase.
• C) There would be no effect on total assets.
• D) Owner's equity would decrease.

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Definitions:

Total Cost

The sum of all costs incurred by a business in producing a certain level of output, including both fixed and variable costs.

Cost Of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.

Cost Of Labor

Refers to the total amount spent by employers on wages, benefits, and payroll taxes for their employees.

Slope

In mathematics, it is the measure of the steepness or inclination of a line, often calculated as the ratio of the vertical change to the horizontal change between two points on the line.