A positive or negative outcome of a decision or action can be called a _____.

• A. asset
• B. transaction
• C. liability
• D. consequence

Answer: (D)

Verified step by step guidance

1. Step 1: Begin by understanding the context of the question. The term 'consequence' refers to the result or outcome of a decision or action, which can be either positive or negative.
2. Step 2: Review the definitions of the other options provided: 'asset,' 'transaction,' and 'liability.' These are specific financial accounting terms that do not align with the general concept of a consequence.
3. Step 3: Define 'asset' as a resource owned by a company that provides future economic benefits, 'transaction' as an event involving the exchange of goods, services, or money, and 'liability' as an obligation or debt owed by a company.
4. Step 4: Compare these definitions to the concept of a 'consequence,' which is broader and not specific to financial accounting. It is the result of an action or decision, not a financial term.
5. Step 5: Conclude that the correct answer is 'consequence,' as it best fits the description of a positive or negative outcome of a decision or action.