A Decrease in a Liability Is Recorded by a Debit

question 118

True/False

A decrease in a liability is recorded by a debit.

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Definitions:

Stock Price Declines

A situation where the market value of a company's shares decreases over a period of time.

Short Calls

An options trading strategy where an investor sells call options on an underlying asset they do not own.

Option Clearing Corporation

The organization responsible for ensuring the proper settlement of options contracts and mitigating counterparty risk in the options market.

Post Margin

The amount of collateral a participant must deposit with a clearinghouse to cover potential future losses on positions.