A Common Business Transaction That Would Not Affect the Amount

question 21

Multiple Choice

A common business transaction that would not affect the amount of owners' equity is

• A) signing a note payable to purchase equipment.
• B) payment of property taxes.
• C) billing of customers for services rendered.
• D) payment of dividends.

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Definitions:

Incubation

Unconscious processing that works on a specific problem while the mind is otherwise occupied.

Contrary Recognition

The ability to identify and acknowledge ideas or facts that oppose personal beliefs or expectations.

Inference Rules

Set guidelines or principles used to deduce new information or conclusions from known facts or premises.

Mental Graph

Mental Graph is a conceptual representation of information in the form of a graph structure in one's mind, used to illustrate relationships between concepts or data.