Which of the Following Transactions Would Cause an Asset to Decrease

question 172

Multiple Choice

Which of the following transactions would cause an asset to decrease and the owner's equity to decrease?

• A) The business provided services to a cash customer.
• B) The business bought supplies for cash.
• C) The owner withdrew cash from the business.
• D) The business bought supplies on account.

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Definitions:

Competency-Based Pay

A compensation system that bases an employee's pay on the skills, abilities, and knowledge they bring to the job, rather than their job title or position.

Management Styles

The various approaches and methods used by managers to motivate staff, direct activities, and achieve organizational objectives.

Compensation Mix

The combination of different types of compensation, such as base salary, bonuses, stock options, and benefits, that an organization offers its employees.

Indirect Pay

Compensation that includes benefits provided by the employer but are not directly paid out as cash, such as health insurance and retirement plans.