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Asset

A decrease in...

Question

A decrease in which of the following will lead to a decrease in the assets of a company?

A

Salary paid to employees

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B

Debtor

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C

Interest paid to bank

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D

Mohan (Proprietor)

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Solution

The correct option is B
Debtor

Debtors are the assets of an enterprise because they are the sums of money which are to be received & hence a decrease in debtors will result in decrease in assets of the enterprise.

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