Using the notion that the accounting equation (Assets = Liabilities + Stockholders Equity) must remain in balance,

Question:

Using the notion that the accounting equation (Assets = Liabilities + Stockholders’ Equity) must remain in balance, indicate whether each of the following transactions is possible.

a. Cash increases; Accounts Payable decreases.

b. Service Revenue increases; Salaries Payable increases.

c. Advertising Expense increases; Cash decreases.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...