What Is the Effect on the Statement of Financial Position

question 27

Multiple Choice

What is the effect on the statement of financial position when the business pays a creditor?

• A)Decrease asset creditor; decrease liability bank
• B)Decrease asset bank; decrease liability creditor
• C)Decrease asset bank; decrease equity
• D)None of the above

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Definitions:

Technological Factor

Technological factor relates to the impact that advancements and innovations in technology have on a business's operations, strategies, and competitiveness in the marketplace.

Internal Management

The administration and organization of a company's internal affairs, including human resources, operations, and policies.

Mode Of Entry

The strategy or method used by a company to enter into a new market or country for conducting business.

Industrial Policies

Government measures aimed at improving the economic and technological competitiveness of specific sectors within the industry.