Answered: b. increase assets and decrease…

b. increase assets and decrease liabilities c. decrease total assets and decrease liabilities d. increase net income and increase assets e. have no effect on total assets or owners' equity

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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Question

d. $125,300 x 28%=160,384
e. $217,178 x28%=277,987.84
3. Paying cash for supplies would:
a. increase total assets and increase owners' equity
b. increase assets and decrease liabilities
C. decrease total assets and decrease liabilities
d. increase net income and increase assets
e. have no effect on total assets or owners' equity

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