The Payment of an Amount Owed to a Creditor Would

question 103

Multiple Choice

The payment of an amount owed to a creditor would:

• A) increase assets
• B) decrease net income
• C) decrease liabilities
• D) increase liabilities

Understand the necessity and process of closing accounts within the accounting cycle.

Recognize the sequence and importance of steps in the accounting cycle.

Identify the significance and characteristics of permanent and temporary accounts.

Understand the role and preparation of worksheets in the accounting process.

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Definitions:

External Causes

Involves factors or circumstances outside an individual or system that impact outcomes or situations.

Internal Causes

Factors within a person, such as beliefs, desires, or personality traits, that explain their behaviors and decisions.

Law of Contingent Reinforcement

The Law of Contingent Reinforcement posits that the effectiveness of reinforcement (such as rewards or punishments) is dependent on its being administered contingent upon the occurrence of the behavior it is meant to encourage or discourage.

Desirable Behavior

Actions or conduct that are viewed positively and encouraged within a particular social or organizational culture.