Which of the Following Transactions Could Explain the Reason for a Decrease

question 41

Multiple Choice

Which of the following transactions could explain the reason for a decrease in the cash account and a decrease in profit?

• A) Owner withdrawing cash from the business bank account.
• B) Payment to a supplier for goods purchased on credit.
• C) Payment of wages.
• D) Loan repayment.

---

Definitions:

Disruptive Strikes

Work stoppages initiated by employees to protest against their employers, with the aim of causing enough disruption to gain bargaining power.

Labor Union Members

Individuals who are part of an organization that represents workers' interests in negotiations with employers regarding wages, work conditions, and rights.

Collective Bargaining

A process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights.

Escalator Clauses

Provisions in a contract that allow for an automatic increase in wages or prices under certain conditions.