Which of the Following Transactions Would Cause One Asset to Increase

question 70

Multiple Choice

Which of the following transactions would cause one asset to increase and another asset to decrease?

• A) The owner invested cash in the business.
• B) The business paid a creditor.
• C) The business bought inventory on credit.
• D) The business bought supplies for cash.

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Definitions:

Labor Market

A trading area where job seekers and employers meet, defined by labor supply and demand.

Wage Rate

Wage Rate is the standard amount of compensation for labor, paid on an hourly, daily, or piecework basis.

Labor Hired

The process of employing individuals to perform various tasks within a business or organization.

Inputs Employed

The resources, including labor, capital, and materials, used in the production of goods and services.