39 -Which of the following transactions will cause a change in a company's equity ? a)Sale of a vehicle that is among the assets of the business at net book value B)Paying employees NS)lending a loan D)Selling goods on credit at cost TO)Giving the same amount of promissory note for the debt without bond

Answered: 39 - Which of the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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39 -

Which of the following transactions will cause a change in a company's equity ?

a)	Sale of a vehicle that is among the assets of the business at net book value

B)	Paying employees

NS)	lending a loan

D)	Selling goods on credit at cost

TO)	Giving the same amount of promissory note for the debt without bond

Expert Solution

Step 1

Owner equity means the amount that belong to the owner of the business. Any profit will increase the equity and loss will decrease it. Addition made by business will increase it and drawings of the business will decrease it. It amounts to the claim of the businessmen on business.