What Is the Impact on the Accounting Equation of Recording

question 26

Multiple Choice

What is the impact on the accounting equation of recording a payment to a supplier on account?

• A) Assets and liabilities both decrease.
• B) Assets and shareholders' equity both decrease.
• C) Liabilities decrease and shareholders' equity increases.
• D) Liabilities increase and shareholders' equity decreases.

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Definitions:

Perception

The way in which something is regarded, understood, or interpreted by the mind.

Multiple Causality

The concept that an event or phenomenon can be caused by more than one factor or reason.

Past Experience

Previous events or interactions that influence an individual's beliefs, behaviors, and attitudes.

Bias

A predisposition or preference towards a particular perspective, ideology, or individual, often leading to unfairness or discrimination.