When a Company Incurs Additional Debt, Which Type of Account

question 159

Multiple Choice

When a company incurs additional debt, which type of account is increased?

• A) Expense account
• B) Retained earnings
• C) Liability account
• D) Common Stock account

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Definitions:

Historical Generalizations

Broad statements derived from studying patterns and trends in history, often used to explain or predict social, political, or economic phenomena.

Statistical Data

Quantitative or qualitative information collected systematically for analysis, interpretation, and presentation for various purposes, including forecasting and decision making.

Abstract Theories

Concepts and models that are not tied to specific instances or physical examples, often used in academia to understand complex phenomena.

Positive Economic Statement

An objective statement that can be tested or validated through data, as opposed to a normative statement which is subjective and opinion-based.