The Payment of an Amount Owed to a Creditor Would

question 35

Multiple Choice

The payment of an amount owed to a creditor would:

• A)decrease assets.
• B)increase net income.
• C)decrease liabilities.
• D)both decrease assets and decrease liabilities.

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Definitions:

Prices Increase

A situation where the general level of prices for goods and services rises, often measured by the inflation rate.

CPI

A calculation tool, the Consumer Price Index, measures the mean prices of a selected basket of consumer services and goods including food, transportation, and medical services via their weighted average.

Prices Increase

A rise in the general level of prices for goods and services in an economy over a period of time, often indicating inflation.

Unemployment Rate

The portion within the labor force actively seeking work yet remains unemployed.