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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2670fda5-ace8-4827-92ab-edd3720eb83e%2F60e084ed-fb23-4159-92e1-1af91e10057e%2Fhzauhy9_processed.png&w=3840&q=75)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2670fda5-ace8-4827-92ab-edd3720eb83e%2F60e084ed-fb23-4159-92e1-1af91e10057e%2Fn5mtr4b_processed.png&w=3840&q=75)
Transcribed Image Text:Assets decreased, expenses decreased, and liabilities increased
Assets decreased, liabilities decreased, and expenses increased
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1
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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
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](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education