Which of the Following Accounts Is Decreased with a Credit

question 97

Multiple Choice

Which of the following accounts is decreased with a credit?

• A)Unearned Revenue
• B)Prepaid Insurance
• C)Accounts Payable
• D)Service Revenue

Understand the principles and legal consequences of dividing agreements into legal and illegal parts.

Recognize the impact of enforcing agreements that violate statutes and the legislative intent behind statutory prohibitions.

Distinguish between regulatory statutes and revenue-raising statutes and their implications for licensing and the enforceability of contracts.

Assess the enforceability of contracts based on public policy considerations, including the protection of wages, competition, and fairness in contractual agreements.

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Definitions:

Earn

To receive money as payment for work that has been done or to make a profit.

Simple Interest

Interest calculated only on the initial principal amount of an investment or loan, without compounding.

Third Payment

The payment that occurs as the third in a series or schedule of payments.

Borrowed

Refers to money obtained with an agreement to return it, usually with interest.