A Business Paid $8,500 to a Creditor

question 123

Multiple Choice

A business paid $8,500 to a creditor. The effect of this transaction is to:

• A)increase assets and decrease liabilities.
• B)increase assets and decrease owner's equity.
• C)decrease liabilities and owner's equity.
• D)decrease assets and decrease liabilities.

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Definitions:

Language Acquisition

The process by which humans gain the ability to perceive, produce, and understand language.

Phonetic Similarity

The degree to which sounds are perceived as similar based on their acoustic properties, impacting language processing and memory.

Sensorimotor Stage

The first of Piaget’s stages, which lasts from birth to about 2 years of age, when infants construct an understanding of the world by coordinating sensory experiences (such as seeing and hearing) with motoric actions.

Cognitive Development

Involves the growth and change in intellectual capabilities, such as thinking, reasoning, and understanding, through childhood and adolescence into adulthood.