The Effect on the Statement of Financial Position When the Business

question 41

Multiple Choice

The effect on the statement of financial position when the business pays a creditor is:

• 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:

Hypnotizes

The act of inducing a trance-like state in which a person is more open to suggestion, typically for therapeutic purposes.

Schema

A cognitive framework or concept that helps organize and interpret information, based on experiences, to understand the world.

Vivid

Producing powerful feelings or strong, clear images in the mind.

Schema-Based Memory

Memory model suggesting that what we remember is influenced by our knowledge structure or schemas—frameworks that help us organize and interpret information.