Payment of a Liability Would Do Which of the Following

question 64

Multiple Choice

Payment of a liability would do which of the following?

• A)Decrease shareholders' equity.
• B)Decrease assets.
• C)Not affect assets.
• D)Increase shareholders' equity.

---

Definitions:

Damages

A monetary compensation awarded to a person as a remedy for loss or injury caused by the unlawful act or omission of another.

Negligence

The failure to exercise the standard of care that a reasonably prudent person would have exercised in a similar situation, resulting in harm or damage.

Term

can refer to a fixed or limited period for which something, such as an agreement or tenure, lasts or is intended to last.

Misrepresented

Incorrectly or falsely represented information, which can lead to misunderstandings or legal issues within agreements or contracts.