The Payment of a Business Debt Not Including Interest

question 51

Multiple Choice

The payment of a business debt not including interest:

• A) Decreases total assets.
• B) Increases total liabilities.
• C) Increases the equity in the business.
• D) Decreases the equity in the business.

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Definitions:

Factors Of Production

Elements involved in generating goods and services, such as land, workforce, financial investment, and entrepreneurial skill.

Production Possibilities Frontier

A graph that shows the highest production levels of two products, based on available resources and various factors.

Trade-offs

The idea of sacrificing one positive aspect or perk to obtain another that is considered to be more desirable.

Production Possibilities Frontier

A curve depicting the maximum attainable combinations of two products that may be produced with available resources and current technology.