A Business Paid $5,000 to a Creditor in Payment of an Amount

question 100

Multiple Choice

A business paid $5,000 to a creditor in payment of an amount owed.The effect of the transaction on the accounting equation was to:

• A)increase one asset,decrease another asset.
• B)increase an asset,increase a liability.
• C)decrease an asset,decrease a liability.
• D)increase an asset,increase owner's equity.

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Definitions:

Simultaneous Move Games

Games in game theory where players make their decisions at the same time without knowing the choices of the other players.

Sequential Move Games

A type of strategic game in game theory where players make decisions or moves one after another in a predefined order.

Antitrust Laws

Legislation intended to promote competition and prevent monopolies by regulating anti-competitive conduct among businesses.

Price Fixing

An illegal agreement between competitors to fix prices at a certain level, rather than letting them fluctuate naturally with market forces.