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On September 30, ABC paid employee salaries of $7,000, including $1,000 it owed to its employees last month. What are the effects of this transaction on the accounting equation? Multiple Choice Expenses decreased, liabilities decreased, and assets decreased.

On September 30, ABC paid employee salaries of $7,000, including $1,000 it owed to its employees last month. What are the effects of this transaction on the accounting equation? Multiple Choice Expenses decreased, liabilities decreased, and assets decreased.

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On September 30, ABC paid employee salaries of $7,000, including $1,000 it owed to its employees last month. What are the effects of this transaction on the accounting equation? Multiple Choice Expenses decreased, liabilities decreased, and assets decreased. Expenses increased, liabilities increased, and assets increased.
Transcribed Image Text:On September 30, ABC paid employee salaries of $7,000, including $1,000 it owed to its employees last month. What are the effects of this transaction on the accounting equation? Multiple Choice Expenses decreased, liabilities decreased, and assets decreased. Expenses increased, liabilities increased, and assets increased.
Assets decreased, expenses decreased, and liabilities increased Assets decreased, liabilities decreased, and expenses increased
Transcribed Image Text:Assets decreased, expenses decreased, and liabilities increased Assets decreased, liabilities decreased, and expenses increased
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Introduction:-

The following balance sheet (Accounting) equation used as follows under:-

Assets = Liabilities + Owners equity

In this problem, 

ABC paid employee salaries of $7,000, including $1,000 it owed to its employees last month.

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