For the Following Transaction, Identify the Type of Change That

question 1

Multiple Choice

For the following transaction, identify the type of change that would have occurred in the accounting equation: Assets = Liabilities + Share capital + Opening retained profits + Revenue - Expenses - Dividends
At the end of the accounting period, three months' interest is owing to the company from the bank on a term deposit with the bank.

• A) An asset decreases and a liability decreases.
• B) An asset increases and revenue increases.
• C) An asset increases and another asset decreases.
• D) None of the above

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Definitions:

Systematic Desensitization

A behavioral therapy technique used to help individuals gradually overcome phobias and anxiety through controlled exposure to the fear stimulus while in a relaxed state.

Role Playing

A method or technique used in teaching and therapy that involves assuming a role and acting it out in a realistic scenario for learning or behavioral modification.

Dream Interpretation

A practice that involves analyzing the content of dreams to uncover hidden meanings or insights, often linked with psychological theories.

Transference

A phenomenon in psychoanalysis where patients project feelings about important people in their past onto their therapists.