Which of the Following Liabilities Increase Typically and Create Spontaneously

question 13

Multiple Choice

Which of the following liabilities increase typically and create spontaneously generated funds as sales increase for the firm?

• A) Long-term debt
• B) Accrued wages
• C) Accounts receivable
• D) Property,plant,and equipment

Recognize the impact of revenue and expenses on the financial position of a business.

Distinguish between transactions that affect Assets, Liabilities, and Owner's Equity.

Apply the accounting equation to analyze transaction effects on the balance sheet items.

Understand the concept of accounting for receivables and payables in business operations.

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Definitions:

Perceived Personal Deprivation

An individual's feeling or belief that they are lacking in some respect compared to others.

Fundamental Attribution Error

The Fundamental Attribution Error is a cognitive bias where people tend to overemphasize personality-based explanations for behaviors observed in others while underestimating situational explanations.

Relative Deprivation

The perception that one is worse off relative to those with whom one compares oneself.

J-curve

An economic theory describing a country's trade balance that initially worsens following a depreciation of its currency but then improves beyond its original level.