The Payment of Employee Salaries Has What Effect on the Accounting

question 115

Multiple Choice

The payment of employee salaries has what effect on the accounting equation?

• A)Assets and stockholders' equity decrease
• B)Liabilities and stockholders' equity decrease
• C)Assets decrease and liabilities increase
• D)Assets increase and liabilities decrease

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Definitions:

Linear Model

A statistical model that assumes a linear relationship between the input variables and the single output variable.

Model

In science and engineering, a model is a simplified representation of a system or phenomenon, used to simulate and analyze its behavior.

Applicable

Capable of or suitable for being applied; relevant or appropriate in a given situation.

Leverage

The use of various financial instruments or borrowed money to increase the potential return of an investment.