Which of the Following Is NOT True? When a Liability

question 22

Multiple Choice

Which of the following is NOT true? When a liability increases:

• A) cash may increase.
• B) revenue may increase.
• C) another liability may decrease.
• D) expenses may increase.

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Definitions:

Indifference Curves

Graphical representations of different bundles of goods between which a consumer is indifferent, showing equal levels of satisfaction.

Horizontal Axis

A line on a graph or chart that runs left to right and usually represents the independent variable.

Vertical Axis

In a graph or chart, the y-axis, which typically measures the variable that is dependent on another variable measured along the horizontal axis.

Utility Function

A mathematical representation of how a consumer ranks different bundles of goods based on their level of satisfaction.