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:

Reciprocate

To respond to a gesture or action by making a corresponding one, often in kind or mutual exchange.

Intimacy

A close, familiar, and usually affectionate or loving personal relationship with another person or group.

Conversations

Interactive communications between two or more people, where thoughts, ideas, and feelings are exchanged.

Disclosure Reciprocity

A phenomenon where one person's openness in sharing personal information leads to a similar response from the other person.