When a Firm Borrows Money, One Effect on the Accounting

question 91

Multiple Choice

When a firm borrows money, one effect on the accounting equation is a(n)

• A)decrease in contributed capital.
• B)increase in assets.
• C)decrease in liabilities.
• D)decrease in assets.

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Definitions:

Probability

The determination of how probable an event is, denoted as a number from 0 to 1.

Uniform Density

Uniform density refers to a type of distribution in which every outcome in a range has an equal probability of occurring, often represented in physics and probability theory.

Probability

A quantification of the chance that a specific event happens, represented as a number ranging from 0 to 1.

Poisson Approximation

A methodology in statistics used to approximate the probability of a given number of events happening in a fixed interval of time or space.