Help with homework problem: Owners' equity in a business decreases?
Owners' equity in a business decreases as a result of which of the following?
A. Investments of cash by the owners.
B. Profits from operating the business.
C. Losses from unprofitable operation of the business.
D. Repaying a loan to a commercial bank.
I am leaning on C. and D.
C. sounds like liabilities that need to be paid off such as worker's wages
D. sounds like the liability is finally being paid off which decreases owners' equity
they both look like they serve the same purpose... -_-
could someone explain to me which one it is?