Tyler Paid $3,700 on Account to the Company from Which

question 23

Multiple Choice

Tyler paid $3,700 on account to the company from which equipment was purchased on credit.This transaction would

• A) decrease assets and decrease liabilities.
• B) increase assets and increase owner's equity.
• C) increase assets and increase liabilities.
• D) increase one asset and decrease another asset.

---

Definitions:

Command Economy

An economic system in which the government or central authority makes all decisions about the production and distribution of goods and services.

Centralized

A system or organization where decision-making and administrative processes are concentrated at a single point or center.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured as the percentage increase in real GDP.

Production Possibility Frontier

A graph showing all the highest production options for two or more products, considering a certain amount of resources.