If a Transaction Causes a Liability Account to Increase, Which

question 42

Multiple Choice

If a transaction causes a liability account to increase, which of these related effects may also occur?

• A) An increase of an equal amount in an equity account.
• B) An increase of an equal amount in an asset account.
• C) A decrease of an equal amount in an asset account.
• D) An increase of an equal amount in another liability account.

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Definitions:

Federal Drug Advertising

Regulations and standards set by federal authorities governing the promotion and marketing of prescription drugs in the United States.

Treat Seizures

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Consent Order

A legal document, agreed upon by all parties involved and approved by a judge, which resolves a dispute without admitting guilt or fault.

Deceptive Advertising

Marketing practices that mislead or trick consumers into believing something about a product or service that is not true.