Question
A business pays $500 cash for their electricity bill. What effect does this transaction have on the accounting equation? A. a decrease in the asset
A business pays $500 cash for their electricity bill.
What effect does this transaction have on the accounting equation?
A. a decrease in the asset cash of $500 and a decrease in the liability accounts payable of $500.
B. an increase in the asset cash of $500 and a decrease in profit or loss of $500 to record the electricity expense.
C. a decrease in the asset cash of $500 and an increase in profit or loss of $500 to record the electricity expense.
D. a decrease in the asset cash of $500 and a decrease in profit or loss of $500 to record the electricity expense.
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Answer Option D a decrease in asset cash of 500 and a de...
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Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
