Question
On September 1, 2015, Richard started a small business called Ricky Rock Wrestling for Fun. Ricky Rock offers a party package designed for active kids,
On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks.
The following transaction occurred during the first month of operations, please indicate what's the effect on the accounting equation:
| September | Description | Amount | ||
| 24 | Telephone bill for $150 was received for the month of September - payment due October 5th | $ | 150 | |
Multiple Choice
A. Increase assets and increase Owner's equity
B. Decrease assets and decrease liabilities
C. Increase assets and increase liabilities
D. None of the other alternatives are correct
E. Increase and decrease assets
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
7th edition
978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792
