One Effect on the Accounting Equation When a Firm Lends

question 141

Multiple Choice

One effect on the accounting equation when a firm lends money is

• A) stockholders' equity decreases.
• B) liabilities decrease.
• C) liabilities increase.
• D) total assets remain the same.

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Definitions:

Episodic Memory

Type of long-term memory that involves the recollection of specific events, situations, and experiences, including their context and associated emotions.

Governing Principles

Fundamental rules or laws that dictate the operation or management of an organization, system, or set of beliefs.

Defense Mechanism

Psychological strategies brought into play by various entities to cope with reality and to maintain self-image.

Repression

In psychoanalytic theory, the unconscious exclusion of painful impulses, desires, or fears from the conscious mind.