A Positive Feedback Mechanism

question 61

Multiple Choice

A positive feedback mechanism

• A) acts to reinforce an initial change.
• B) acts to weaken or oppose an initial change.
• C) will cause a positive change.
• D) will cause a negative change.

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Definitions:

Credit

An accounting entry that increases liabilities or equity or decreases an asset or expense.

Purchase Invoice

A purchase invoice is a document issued by a seller to a buyer that outlines the sale transaction, including the types of products or services sold, quantities, prices, and payment terms.

Refund Liability

A liability recorded on the balance sheet for expected refunds to customers for returned or unsatisfactory products or services.

Estimated Returns

The anticipated amount of profits or losses from an investment, often based on historical data and future projections.