A Business Settles a Liability by Making a Payment with Cash.How

question 45

Multiple Choice

A business settles a liability by making a payment with cash.How does paying this liability affect the accounting equation?

• A) Assets decrease; liabilities decrease.
• B) Liabilities decrease; owner's equity increases.
• C) Assets increase; liabilities increase.
• D) Assets increase; liabilities decrease.

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Definitions:

Codes Of Ethics

A set of principles and rules designed to guide the behavior and decision-making of members within an organization or profession.

Organizational Citizenship

The voluntary behaviors employees display beyond their normal job duties, which contribute to the organization's effectiveness.

Customer Relations

The practices and strategies that a business uses to communicate, engage with, and satisfy its customers.

Ethical Conduct

Refers to behavior that is consistent with principles of morality or rules of right conduct within a given professional or social setting.