Question
You are the owner of Jack's Chicken Shack, Inc. Your company purchases $3,000 worth of chicken from Chick Filet on account. When you pay the
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You are the owner of Jack's Chicken Shack, Inc. Your company purchases $3,000 worth of chicken from Chick Filet on account. When you pay the amount you owe Chick Filet, the transaction for the payment will be recorded on Chick Filet's books as:
increase an asset $3,000 and increase a liability $3,000.
increase an asset $3,000 and decrease another asset.
decrease an asset $3,000 and decrease a liability.
nothing because this is not a transaction for Chick Filet.
You are the owner of Jack's Chicken Shack, Inc. Your company purchases $3,000 worth of chicken from Chick Filet on account. When you pay the amount you owe Chick Filet, the transaction for the payment will be recorded on Chick Filet's books as:
| increase an asset $3,000 and increase a liability $3,000. | ||
| increase an asset $3,000 and decrease another asset. | ||
| decrease an asset $3,000 and decrease a liability. | ||
| nothing because this is not a transaction for Chick Filet. |
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
3rd Edition
9780078025525, 9780077517359, 77517350, 978-0077398194
