An Employee Worked for a Small Business During the Current

question 16

Multiple Choice

An employee worked for a small business during the current month but will not be paid until the next month.If the business uses cash accounting, what would be the effect on the accounting equation in the current month?

• A)Assets decrease and liabilities decrease.
• B)Liabilities increase and owners' equity increases.
• C)Liabilities increase and owners' equity decreases.
• D)There is no effect at this time.

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Definitions:

Participant's Identity

Information related to a study participant that could reveal who they are, often protected in research to ensure privacy and confidentiality.

Laboratory Research

Laboratory research is a controlled method of scientific investigation in which phenomena can be studied under predetermined conditions.

Controlled Setting

A controlled setting is an environment where variables are manipulated or held constant to examine their effect on outcomes in an experimental study.

Confounding Factors

Variables that interfere with the clarity of the relationship between the independent and dependent variables in a study.