Slumbers,Inc

question 93

Multiple Choice

Slumbers,Inc.borrows $3,000 at 12% from a bank on September 1,2012 and agrees to pay the interest and principal in two years.What is the effect on the accounting equation of the adjusting entry to record interest for the year ended December 31,2012?

• A)Assets will increase by $3,000.
• B)Liabilities will decrease by $120.
• C)Shareholders' equity will decrease by $120.
• D)Cash will decrease by $120.

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Definitions:

Cultural Evolution

The process whereby cultures develop and propagate according to systems of belief or behavior that contribute to the success of a society.

Biological Evolution

The process through which species of organisms undergo change over time through variation, reproduction, and natural selection, leading to the emergence of new species.

Faster

Relates to speed; being quicker in movement, action, or progress as compared to another reference point or unit.

Social Psychological

Relating to how social influences affect individual behavior and mental processes.