Which of the Following Accounts Is Decreased by a Debit

question 80

Multiple Choice

Which of the following accounts is decreased by a debit entry?

• A) Cash
• B) Prepaid insurance
• C) Accounts payable
• D) Insurance expense

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Definitions:

Behavioral Economics

A field of economics that studies how psychological, cognitive, emotional, cultural, and social factors affect economic decisions.

Rationality

In economics, rationality refers to the assumption that individuals make decisions based on complete information, aiming to maximize their benefit or utility.

Neoclassical Economics

A strategy within economics aimed at understanding how the distribution of products, earnings, and outputs is governed by the forces of supply and demand.

Behavioral Economics

An area of study that combines insights from psychology with economic theory to better understand decision-making by individuals and institutions.