Mark Paid $500 Cash to Partially Reduce the Amount Owed

question 89

Multiple Choice

Mark paid $500 cash to partially reduce the amount owed for equipment that was previously bought on account. This transaction would

• A) increase both assets and liabilities.
• B) increase assets and decrease liabilities.
• C) decrease both assets and liabilities.
• D) decrease assets and increase liabilities.

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Definitions:

National Security

Measures and strategies implemented by a government to protect its country's citizens, economy, and institutions from threats.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than another entity.

Offshoring

The relocation of a business process or operation from one country to another, typically to leverage lower labor costs.

Specialization

The process by which individuals, businesses, or countries focus on producing a limited range of goods or services to gain greater efficiency and productivity.