A Credit to a Liability Account

question 27

Multiple Choice

A credit to a liability account

• A) indicates an increase in the amount owed to creditors.
• B) indicates a decrease in the amount owed to creditors.
• C) is an error.
• D) must be accompanied by a debit to an asset account.

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Definitions:

Social Discounting Bias

The tendency to undervalue the future well-being or outcomes of others compared to one's own immediate needs or desires.

Defense Mechanism

Psychological strategies employed by individuals to cope with reality and to maintain self-image.

Social Customs

Established traditions, practices, and behaviors that are widely accepted and followed by a specific society or cultural group.

Job Burn-Out

A state of physical, emotional, or mental exhaustion combined with doubts about competence and the value of work.