Which of the Following Is an Example of a Claims

question 46

Multiple Choice

Which of the following is an example of a claims exchange transaction?

• A) An asset decreases and an equity account decreases.
• B) An asset increases and another asset decreases.
• C) A liability increases and an equity account decreases.
• D) A liability increases and an equity account also increases.

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Definitions:

Specified Design

A detailed description or plan showing how something is to be made or built.

Accidental Fire

A fire that occurs unexpectedly and unintentionally, often resulting from negligence, a lack of attention, or an unforeseen event.

Discharged Duty

The completion or fulfilment of a legal or moral obligation, relieving the individual or entity from further responsibilities.

Express Condition

A stipulation in a contract that explicitly outlines a requirement or condition that must be met for the contract's terms to be fulfilled or action to take place.