The Payment of a Liability

question 72

Multiple Choice

The payment of a liability

• A) decreases assets and shareholders' equity.
• B) increases assets and decreases liabilities.
• C) decreases assets and increases liabilities.
• D) decreases assets and liabilities.

---

Definitions:

Budget Surplus

A financial situation where a government's revenues exceed its expenditures over a specific timeframe.

Military Spending

The amount of financial resources dedicated by a nation to maintaining and equipping its armed forces and defense activities.

Malthusian Theory

A theory proposed by Thomas Malthus suggesting that population growth will outpace agricultural production, leading to widespread famine and disaster.

Population Growth

The increase in the number of individuals in a population, typically measured as a percentage change over time.