Which Accounts Are Affected When the Company Pays Salaries

question 48

Multiple Choice

Which accounts are affected when the company pays salaries?

• A)Assets and Capital
• B)Liabilities and Capital
• C)Assets and Expenses
• D)None of the above are correct.

---

Definitions:

Loanable Funds

A marketplace where individuals who save provide capital for those in need of loans.

Potential Investments

Opportunities for allocating resources with the expectation of generating a future financial return or benefit.

Loanable Funds

Represents the money available for borrowing in the financial markets, determined by savings and the supply of credit.

Equilibrium Interest Rate

The interest rate at which the demand for money balances equals the supply of money in circulation, leading to a stable economic environment.