The Payment of Employee Salaries Has What Effect on the Accounting

question 44

Multiple Choice

The payment of employee salaries has what effect on the accounting equation?

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

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Definitions:

Effective Problem Solving

A process of defining a problem, generating solutions, and choosing the best course of action to address the issue at hand.

Law Of Small Numbers

A bias in which people infer patterns or make generalizations from a small sample size, which may lead to misleading conclusions.

Gambler's Fallacy

The mistaken belief that if something happens more frequently than normal during some period, it will happen less frequently in the future, or vice versa.

Availability Heuristic

A cognitive shortcut that depends on the first examples that appear in someone's mind when considering a particular subject, idea, technique, or choice.