Chico Company Experienced an Accounting Event That Affected Its Accounting

question 133

Multiple Choice

Chico Company experienced an accounting event that affected its accounting equation as indicated below: Which of the following accounting events could have caused these effects on Chico's accounting equation?

• A)Issued common stock.
• B)Paid cash expenses.
• C)Borrowed money from a bank.
• D)Paid a cash dividend.

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Definitions:

Compensation Costs

All expenses related to employee salaries, wages, benefits, and rewards, reflecting the total cost to an employer for securing the services of labor.

Hiring Freeze

A hiring freeze is a temporary pause on the recruitment process, usually adopted by organizations to reduce costs.

Variable Pay

Compensation that is dependent on performance or results achieved, as opposed to fixed salaries, incentivizing employees to achieve organizational goals.

Outsourcing Compensation

The practice of hiring external entities to manage compensation and benefits planning, often to optimize costs.