What Is the Result If the Amount of Net Income

question 126

Multiple Choice

What is the result if the amount of net income for the year is less than the amount of the owner's withdrawals?

• A)Owner,Capital increases
• B)Cash balance decreases
• C)Cash balance increases
• D)Owner,Capital decreases

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Definitions:

Representation Bias

Representation bias refers to the cognitive bias where individuals inaccurately assess the probability of an event based on the ease with which examples come to mind, often due to how frequently they are portrayed or mentioned.

Creativity

The ability to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining ourselves and others.

Novel Idea

A new, original, or innovative concept that has not been thought of before.

Unique Approach

A distinctive method or way of dealing with problems, carrying out tasks, or achieving objectives that sets it apart from others.