A Business Settles a Liability by Making a Payment with Cash.How

question 30

Multiple Choice

A business settles a liability by making a payment with cash.How does paying this liability affect the accounting equation?

• A)Liabilities decrease;owners' equity increases.
• B)Assets increase;liabilities increase.
• C)Assets increase;liabilities decrease.
• D)Assets decrease;liabilities decrease.

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Definitions:

State Constitutions

Documents that set forth the structure, function, and limits of different state governments within the United States.

Indentured Servitude

A labor system prevalent in the American colonies and other parts of the world, where individuals worked for a contracted period in exchange for transportation, food, lodging, and at the end of their contract, often received "freedom dues" including land or money.

All But Disappeared

A phrase describing something that has virtually vanished or diminished to the point of near extinction.

United States

A country primarily located in North America, consisting of 50 states, a federal district, five major self-governing territories, and various possessions.