For each transaction a through f, identify its impact on the accounting equation (select from 1 through 5 below). a. The company pays cash toward an account payable. b. The company purchases equipment on credit. c. The owner invests cash in the business. d. The owner withdraws cash from the business. e. The company purchases supplies for cash. f. The company provides services for cash. 1. Decreases an asset and decreases equity. 2. Increases an asset and increases a liability. 3. Decreases an asset and decreases a liability. 4. Increases an asset and decreases an asset. 5. Increases an asset and increases equity.
For each transaction a through f, identify its impact on the accounting equation (select from 1 through 5 below). a. The company pays cash toward an account payable. b. The company purchases equipment on credit. c. The owner invests cash in the business. d. The owner withdraws cash from the business. e. The company purchases supplies for cash. f. The company provides services for cash. 1. Decreases an asset and decreases equity. 2. Increases an asset and increases a liability. 3. Decreases an asset and decreases a liability. 4. Increases an asset and decreases an asset. 5. Increases an asset and increases equity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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For each transaction a through f, identify its impact on the
a. The company pays cash toward an account payable.
b. The company purchases equipment on credit.
c. The owner invests cash in the business.
d. The owner withdraws cash from the business.
e. The company purchases supplies for cash.
f. The company provides services for cash.
1. Decreases an asset and decreases equity.
2. Increases an asset and increases a liability.
3. Decreases an asset and decreases a liability.
4. Increases an asset and decreases an asset.
5. Increases an asset and increases equity.
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