Which of the Following Transactions Would Cause One Asset to Increase

question 91

Multiple Choice

Which of the following transactions would cause one asset to increase and another asset to decrease?

• A)The owner invested cash in the business.
• B)The business paid a creditor.
• C)The business incurred an expense on credit.
• D)The business bought supplies for cash.

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Definitions:

Claim In Recoupment

A legal claim or defense allowing a defendant in a lawsuit to assert a right to reduce the amount of damages owed by claiming a corresponding claim against the plaintiff.

Good Faith

The honest intention to act without taking an unfair advantage over another party, often an underlying principle in contracts.

Authenticity

The quality of being genuine or not counterfeit, and the verification of something as being true or legitimate.

Holder In Due Course

A party that holds a negotiable instrument, like a check or promissory note, in good faith and for value, with certain rights to claim payment.