One Effect on the Accounting Equation When a Firm Lends

question 141

Multiple Choice

One effect on the accounting equation when a firm lends money is

• A) stockholders' equity decreases.
• B) liabilities decrease.
• C) liabilities increase.
• D) total assets remain the same.

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Definitions:

Defensive Pessimism

Thinking negative thoughts to prepare for negative outcomes.

Pessimistic Explanatory Style

Seeing bad events as all-encompassing.

Social Support

Fulfilling relationships with friends and family that provide both emotional and practical support.

Self-Reported Health

An individual's assessment or perception of their own health status, often used in health surveys and research.