When a Company Pays an Amount It Owes a Creditor

question 140

Multiple Choice

When a company pays an amount it owes a creditor:

• A)assets are decreased and net income is decreased.
• B)assets are decreased and liabilities are increased.
• C)liabilities are decreased and net income is increased.
• D)assets are decreased and liabilities are decreased.

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Definitions:

NLRA

The National Labor Relations Act, a foundational U.S. law enacted in 1935 to protect the rights of employees and employers, to encourage collective bargaining, and to curtail certain private sector labor and management practices.

Competitive Markets

Markets characterized by numerous buyers and sellers such that no single participant has the market power to influence the prices of products or services.

Supply of Labor

The total number of potential workers available to perform work in an economy, determined by factors like demographics, labor market conditions, and immigration policies.

Unions

Organizations that represent the collective interests of workers, bargaining with employers on their behalf for better wages, working conditions, and benefits.