When a Liability Increases, Which of the Following Is Correct

question 5

Multiple Choice

When a liability increases, which of the following is correct?

• A) An expense may increase.
• B) An asset may decrease.
• C) Shareholders' equity may increase.
• D) Revenue may increase.

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Definitions:

Standard Deviation

A metric indicating the degree of spread or diversity among a collection of numbers, determined by taking the square root of the variance.

Sample Mean

The average of a sample set of data, representing an estimate of the population mean.

Sampling Distribution

A distribution of a statistic obtained from a large number of samples drawn from a specific population.

Standard Deviation

A statistical metric that quantifies the spread or dispersion of a dataset relative to its mean, highlighting the variability within the data.