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

question 145

Multiple Choice

Bliss Company 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:

Pollution

It refers to the introduction of harmful substances or products into the environment, causing adverse effects on living beings and ecosystems.

External Costs

Costs that are not reflected in the market price of goods or services, often borne by society.

Efficient

Describes a system or process that operates in a way that maximizes productivity or output with minimal waste or expense.

External Cost

A cost that is not borne by the parties involved in an economic transaction, often affecting third parties.