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

---

Definitions:

Substance Dependency

A condition characterized by the compulsive use of substances (such as drugs or alcohol) despite harmful consequences, leading to physical and psychological dependence.

Electra Complexes

A psychoanalytic theory describing a girl's psychosexual competition with her mother for possession of her father, akin to the Oedipus complex in boys.

Freudian Theory

A psychological theory developed by Sigmund Freud that emphasizes unconscious drives and conflicts as the primary sources of human behavior.

Oedipus

A character in Greek mythology whose life events inspired the psychoanalytic theory of the Oedipus complex, involving a child's unconscious desire for their opposite-sex parent and jealousy toward the same-sex parent.