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:

Normative Influence

The impact of the norms of a social group on an individual's behavior, driving conformity to group standards to gain acceptance or avoid social sanction.

Demonstrability

The extent to which the results or benefits of an action or product can be easily observed or proven to others.

Error-Checking Function

The process within a system designed to detect and correct mistakes or inconsistencies to ensure accuracy and reliability.

Motivation

The driving force behind individuals' actions, desires, and needs, prompting them towards goal-oriented behavior.