A Credit to an Asset Account Will Cause a Decrease

question 85

True/False

A credit to an asset account will cause a decrease in assets on the financial statements.

---

Definitions:

Nominal Damages

A small amount of money awarded to a plaintiff in a lawsuit to recognize a legal right was violated, without substantial loss or damage occurring.

Trivial Damages

Refers to minimal or insignificant compensation awarded when a legal wrong has occurred, but the plaintiff has not experienced substantial harm.

Negligence Tort

A legal claim arising from injuries or damages caused by a person's carelessness or failure to take reasonable care.

Reasonable Risk

Reasonable risk involves a risk level that a prudent person would consider acceptable in order to achieve a specific benefit or goal.