Which of the Following Best Describes One Effect of Recognizing

question 83

Multiple Choice

Which of the following best describes one effect of recognizing expenses incurred by a business entity?

• A)Assets will increase.
• B)Liabilities will decrease.
• C)Contributed capital will increase.
• D)Retained earnings will decrease.

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Definitions:

Redistributive Exchange

An economic system where goods or resources are collected from a group and then distributed based on a specific set of criteria.

Tribute

Payment made periodically by one state or ruler to another, especially as a sign of dependence or submission.

Political Organization

The way power, as the capacity to do something, is accumulated, arranged, executed, and structurally embedded in society; the means through which a society creates and maintains social order and reduces social disorder.

Uncentralized Political System

A form of governance where power or legal authority is dispersed among various levels of government or organizations rather than being centralized in a single authority.