Saturn, Inc

question 102

Multiple Choice

Saturn, Inc. paid $13,000 on accounts payable. How does this transaction affect the accounting equation of Saturn?

• A) Assets decrease by $13,000 and equity increases by $13,000.
• B) Assets decrease by $13,000 and liabilities decrease by $13,000.
• C) Assets increase by $13,000 and equity decreases by $13,000.
• D) Assets increase by $13,000 and liabilities increase by $13,000.

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Definitions:

Power

The ability or capacity to direct or influence the behavior of others or the course of events.

Purchasing Decision

The process by which a consumer decides what they will buy, taking into account factors like price, quality, and personal preferences.

Aspirational Reference Group

A group that an individual aspires to belong to or identifies with, influencing their behavior and choices.

Reference Groups

Social groups that individuals use as a standard for evaluating their own behavior, attitudes, and values.