Which of the Following Transactions Would Decrease an Asset and Decrease

question 61

Multiple Choice

Which of the following transactions would decrease an asset and decrease stockholders' equity?

• A)The payment of an account payable
• B)The performance of a service for a client on account
• C)The borrowing of money from the bank for thirty days
• D)The declaration and payment of a dividend to the shareholders

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Definitions:

Chemical Manufacturer

A company involved in the production of chemicals through physical or chemical processes, serving various industries such as pharmaceuticals, agriculture, and materials.

Grams

Grams are a unit of mass in the metric system, used to measure small weights of substances or objects, equivalent to one thousandth of a kilogram.

Decision Variables

Variables that represent choices available to a decision-maker in optimization problems.

Objective

A specific, measurable goal or target that an individual, team, or organization aims to achieve within a set timeframe.