What Is the Net Result If the Amount of Net

question 63

Multiple Choice

What is the net 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

---

Definitions:

Annual Demand

Annual demand quantifies the total quantity of a particular product or service that consumers are willing to buy over the course of a year.

Price Breaks

Discounts or lower pricing offered by suppliers to buyers as incentives for purchasing larger quantities.

Safety Stock

A quantity of inventory maintained to guard against shortages or delays in supply or demand, acting as a buffer.

Stockouts

Situations where demand cannot be fulfilled because the inventory of a product is exhausted, often resulting in lost sales or customer dissatisfaction.