Which of the Following Transactions Changes the Mix of Assets

question 65

Multiple Choice

Which of the following transactions changes the mix of assets only?

• A) Paid for supplies with cash.
• B) Borrowed money from Second National Bank.
• C) Received money for fees earned.
• D) Received a utility bill.

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Definitions:

Automatic Withdrawals

Electronic funds transfers or payments automatically deducted from a bank account, typically used for recurring expenses.

Endowment Effect

The phenomenon where individuals value an owned object higher than they would if they did not own it.

Raffle Prize

A reward given to a randomly selected participant in a raffle, where people enter by purchasing tickets for a chance to win.

Myopia

Refers to the difficulty human beings have with conceptualizing the more distant future. Leads to decisions that overly favor present and near-term options at the expense of more distant future possibilities.