Question
Company A received a bill of $600 from Company B. The owner of Company A is postponing payment of the bill until a later date.
Company A received a bill of $600 from Company B. The owner of Company A is postponing payment of the bill until a later date. The effect on specific items in the basic accounting equation is:
a decrease in Accounts Payable and an increase in Retained Earnings.
none of these are correct.
a decrease in Cash and an increase in Accounts Payable.
an increase in Accounts Payable and a decrease in Retained Earnings.
a decrease in Cash and an increase in Retained Earnings.
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Financial Accounting Longman Modular Texts In Business And Economics
Authors: Christopher Waterston, Anne Britton
2nd Edition
058238169X, 978-0582381698
