A Decrease in a Liability Is Recorded by a Debit

question 118

True/False

A decrease in a liability is recorded by a debit.

---

Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good or service at a lower opportunity cost than competitors.

Absolute Advantage

The ability of an individual, firm, or country to produce more of a good or service than competitors using the same amount of resources.

Shoemaking

is the craft or industry involved in the design, production, and repair of shoes, including both traditional techniques and modern manufacturing.

Opportunity Cost

Opportunity cost represents the value of the best alternative that is foregone when making a choice, highlighting the trade-offs involved in any decision.