Bliss Corporation Settles a Liability by Making a Payment in Cash.How

question 12

Multiple Choice

Bliss Corporation settles a liability by making a payment in cash.How does paying this liability affect the accounting equation of the business?

• A)assets and liabilities decrease
• B)liabilities decrease and equity increases
• C)assets and liabilities increase
• D)assets increase and equity decreases

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Definitions:

Agreeableness

A personality trait characterized by warmth, friendliness, and a tendency towards cooperation and social harmony.

Bipolar Disorder

A mental health condition characterized by extreme mood swings that include emotional highs (mania or hypomania) and lows (depression).

Neuroticism

A characteristic of personality marked by feelings of emotional unpredictability, nervousness, frequent mood changes, annoyance, and melancholy.