Homework Help is Here – Start Your Trial Now!
Business
Accounting
Only one of the following statements correctly describes the effect of a transaction on the financial statements. Which one? O A. A debtor who pays an amount owed £1,000 will result in an increase in sales by £1,000 and an increase in cash by £1,000 OB. The purchase of a motor van for £10,000 cash will increase the assets (motor van) by £10,000 and decrease equity by £10,000 OC. Goods purchased on credit £2,000 will increase inventories by £2,000 and increase trade payables by £2,000 o D. The payment of a trade payable by £3,000 will decrease the claims (payables) by £3,000 and decrease equity by £3,000

Only one of the following statements correctly describes the effect of a transaction on the financial statements. Which one? O A. A debtor who pays an amount owed £1,000 will result in an increase in sales by £1,000 and an increase in cash by £1,000 OB. The purchase of a motor van for £10,000 cash will increase the assets (motor van) by £10,000 and decrease equity by £10,000 OC. Goods purchased on credit £2,000 will increase inventories by £2,000 and increase trade payables by £2,000 o D. The payment of a trade payable by £3,000 will decrease the claims (payables) by £3,000 and decrease equity by £3,000

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
Only one of the following statements correctly describes the effect of a transaction on the financial statements. Which one? O A. A debtor who pays an amount owed £1,000 will result in an increase in sales by £1,000 and an increase in cash by £1,000 OB. The purchase of a motor van for £10,000 cash will increase the assets (motor van) by £10,000 and decrease equity by £10,000 OC. Goods purchased on credit £2,000 will increase inventories by £2,000 and increase trade payables by £2,000 o D. The payment of a trade payable by £3,000 will decrease the claims (payables) by £3,000 and decrease equity by £3,000
Transcribed Image Text:Only one of the following statements correctly describes the effect of a transaction on the financial statements. Which one? O A. A debtor who pays an amount owed £1,000 will result in an increase in sales by £1,000 and an increase in cash by £1,000 OB. The purchase of a motor van for £10,000 cash will increase the assets (motor van) by £10,000 and decrease equity by £10,000 OC. Goods purchased on credit £2,000 will increase inventories by £2,000 and increase trade payables by £2,000 o D. The payment of a trade payable by £3,000 will decrease the claims (payables) by £3,000 and decrease equity by £3,000
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

SEE SOLUTION
Similar questions
  • SEE MORE QUESTIONS
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