Homework Help is Here – Start Your Trial Now!
Business
Accounting
Allen Nature Trip, a travel agency, purchased equipment for P120,.000, made a down payment of P50,000 and signed a note for the balance. This transaction will O increase total assets by P120.000 O increase total liabilities by P50.000 O not affect owner's equity all of the above choices are correct

Allen Nature Trip, a travel agency, purchased equipment for P120,.000, made a down payment of P50,000 and signed a note for the balance. This transaction will O increase total assets by P120.000 O increase total liabilities by P50.000 O not affect owner's equity all of the above choices are correct

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

43 44

Question 44 Allen Nature Trip, a travel agency, purchased equipment for P120,000, made a down payment of P50,000 and signed a note for the balance. This transaction will increase total assets by P120,000 O increase total liabilities by P50.000 O not affect owner's equity O all of the above choices are correct
Transcribed Image Text:Question 44 Allen Nature Trip, a travel agency, purchased equipment for P120,000, made a down payment of P50,000 and signed a note for the balance. This transaction will increase total assets by P120,000 O increase total liabilities by P50.000 O not affect owner's equity O all of the above choices are correct
Question 43 1 pts The assets of the business at the start of the month is P1,000,000 and the owner's equity is P800,000. Equipment worth P500,000 were purchased during the month of which only P150,000 were paid for. At the end of the month, liabilities will become O 550,000 O 1,150,000 O 800,000 O 1,000,000
Transcribed Image Text:Question 43 1 pts The assets of the business at the start of the month is P1,000,000 and the owner's equity is P800,000. Equipment worth P500,000 were purchased during the month of which only P150,000 were paid for. At the end of the month, liabilities will become O 550,000 O 1,150,000 O 800,000 O 1,000,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS