The Effect on the Statement of Financial Position When a Debtor

question 62

Multiple Choice

The effect on the statement of financial position when a debtor pays the amount that is owed is:

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

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Definitions:

Swing Sets

Outdoor play equipment consisting of a frame from which swings are suspended, commonly found in playgrounds and backyards.

Comparative Advantage

The ability of a country or individual to produce a particular good or service at a lower opportunity cost than others.

Typing

The process of inputting text by pressing keys on a typewriter, computer keyboard, or mobile device.

Specialization

The concentration of the productive efforts of individuals and firms on a limited number of activities, leading to increased efficiency and productivity.