When a Liability Is Paid, Which of the Following Is

question 71

Multiple Choice

When a liability is paid, which of the following is true?

• A) Total assets and total liabilities remain the same.
• B) Total assets and total owners' equity decrease.
• C) Total assets decrease by the same amount that total liabilities increase.
• D) Total assets and total liabilities decrease.

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Definitions:

Average Wages

The mean income of workers in a particular group, sector, or economy, calculated by dividing the total wages by the number of wage earners.

Gender Pay Gap

The average difference in pay between men and women, often highlighting disparities in earnings for similar work or across the labor market.

Discrimination

Unfair or prejudiced treatment of individuals based on characteristics such as race, gender, age, or sexuality.

Market Wages

The prevailing pay rates for jobs in the competitive job market, influenced by factors such as industry, complexity, and location.