Decreases in Retained Earnings That Represent Costs of Assets or Services

question 110

Multiple Choice

Decreases in retained earnings that represent costs of assets or services that are used to earn revenues are called:

• A)Liabilities
• B)Equity
• C)Withdrawals
• D)Expenses
• E)Contributed Capital

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Definitions:

Anticonsumption

The deliberate opposition to or rejection of consumerism and the excessive purchasing of goods or services.

Shrinkage

The loss of inventory that can occur due to theft, damage, or error, representing a discrepancy between recorded stock and actual physical inventory.

Serial Wardrobers

Individuals who frequently buy new clothing items, only to wear them a few times before replacing them with newer purchases.

Consumerism

The societal trend in which the buying and consumption of goods and services is considered a social and economic necessity.