A Business Pays Off a Note Payable

question 9

Multiple Choice

A business pays off a note payable. What effect does this have on the accounting equation?

• A)Assets increase, Liabilities decrease, and Stockholders' Equity remains the same.
• B)Assets decrease, Liabilities remain the same, and Stockholders' Equity increases.
• C)Assets decrease, Liabilities decrease, and Stockholders' Equity remains the same.
• D)Assets increase, Liabilities remain the same, and Stockholders' Equity increases.

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Definitions:

Biodiversity

The diversity of living organisms globally or within a specific ecosystem or habitat.

Biological Evolution

The process by which species of organisms change over time through genetic variation and natural selection.

Biological Extinction

The complete disappearance of a species from Earth, meaning no living members of the species exist anymore.

Native Vegetation

Plant species that are indigenous to a particular area and have not been introduced by human activity.