A business settles a liability by making a payment with cash. How does paying this liability affect the accounting equation?
A) Assets decrease; liabilities decrease
B) Liabilities decrease; stockholders' equity increases
C) Assets increase; liabilities increase.
D) Assets increase; liabilities decrease.
Ans: A) Assets decrease; liabilities decrease
Business
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Higher depreciation rates:
A) allow assets to be depreciated more rapidly. B) decrease the CCA depreciation tax shield. C) allow more depreciation over the asset's life. D) Have no effect on the CCA tax shield.
Business
The law that provided for the Neighborhood Stabilization Program to help areas that were decimated by distressed properties is called
A. Equal Credit Opportunity Act B. Real Estate Settlement Procedures Act C. Housing and Economic Recovery Act D. Truth in Lending Act
Business