Final answer:
Withdrawals and losses are two examples that can reduce Owner's Equity. Withdrawals decrease available assets, while losses occur when expenses are higher than revenues, thereby decreasing the company's net assets.
Step-by-step explanation:
Two examples of things that can reduce Owner's Equity are withdrawals and losses. Owner's equity represents the owner's investment in the business minus any liabilities or debts. When the owner makes withdrawals, such as taking cash out of the business for personal use, this decreases the total equity because it reduces the assets available in the business. Similarly, when a business incurs losses, which happen when expenses exceed revenues over a period, the net income negatively affects equity because it reduces the overall value of the company's net assets. Therefore, the correct answer to the question is D) Withdrawals and losses.