Which of the Following Transactions Decreases Both Assets and Owner's

question 85

Multiple Choice

Which of the following transactions decreases both assets and owner's equity?

• A) Withdrawal of cash by the owner
• B) Advance payment made for insurance
• C) Receipt of a phone bill, to be paid at a later time
• D) Payment of a liability

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Definitions:

Concrete Words

Language that describes specific, observable things rather than abstract concepts, making communication clearer.

Honor

A quality that combines respect, pride, and integrity, often associated with fulfilling moral obligations and commitments.

Progress

The advancement or development towards achieving a goal.

Grammar Errors

Mistakes in the use of language rules that can affect the clarity, understanding, and professionalism of written or spoken communication.