Which of the Following Would Cause Total Assets to Decrease

question 48

Multiple Choice

Which of the following would cause total assets to decrease and total expenses to increase?

• A) Recording the depreciation of equipment
• B) Recording the consumption of supplies
• C) Recording the expiration of Prepaid Rent Expense
• D) All of the above would have that effect.

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Definitions:

Public Relations

The strategic communication process that builds mutually beneficial relationships between organizations and their publics.

Conjunction Fallacy

A logical fallacy that occurs when people assume that specific conditions are more probable than a single general one.

Base Rate Fallacy

A cognitive error where people wrongly judge the likelihood of a situation by ignoring general statistical information and focusing on specific information.

Gambler's Fallacy

The erroneous belief that if something happens more frequently than normal during a given period, it will happen less frequently in the future, or vice versa.