What Is the Effect on the Statement of Financial Position

question 30

Multiple Choice

What is the effect on the statement of financial position when the business pays a creditor?

• A)decrease asset creditor; decrease liability bank.
• B)decrease asset bank; decrease liability creditor.
• C)decrease asset bank; decrease equity.
• D)none of the above.

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Definitions:

Worker Cooperatives

A business model where employees own the company, participate in its decision-making, and benefit from its profits.

Japanese Labor Law

A set of laws in Japan that governs labor relations, employee rights, working conditions, and union activities, promoting harmonious labor-management relations.

German System

Refers to Germany's model of industrial relations, characterized by a high level of worker participation in management decisions through mechanisms like works councils and co-determination.

Interunion Competition

Competition between different labor unions to represent workers in a particular sector or company.