A Credit to a Liability Account

question 89

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) will always increase shareholders' equity.
• D) must be accompanied by a debit to an asset account.

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Definitions:

Short-sighted

lacking foresight or perspective; making decisions based on immediate rather than long-term outcomes.

Synergy

The interaction or cooperation of two or more organizations, substances, or other agents to produce a combined effect greater than the sum of their separate effects.

Organizational

Pertaining to the structure and functioning of an organization, including its systems, processes, and dynamics.

Management

The process of planning, organizing, leading, and controlling resources to achieve organizational goals efficiently and effectively.