Assume that Wave Rider paid expenses totaling $32,000. How does this transaction affect Wave Riders accounting equation?

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Assume that Wave Rider paid expenses totaling $32,000. How does this transaction affect Wave Rider’s accounting equation?

a. Increases assets and decreases liabilities

b. Decreases both assets and stockholders’ equity

c. Increases both assets and stockholders’ equity

d. Decreases assets and increases liabilities AppendixLO1

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Financial Accounting

ISBN: 9781292019543

3rd Global Edition Edition

Authors: Robert Kemp, Jeffrey Waybright, Pearson Education

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