Select a transaction that effects the accounting equation as follows: Effects a. The company purchases supplies for cash. b. The company purchases equipment for cash. c. The owner invests land in the business (in exchange for its stock). d. The company purchases supplies on credit. The company provides services and sent a bill for $500 to be received within 30 days. f. The company purchases equipment on credit. e. Transaction Decreases an asset and decreases a liability. Decreases an asset and decreases equity. Increases an asset and decreases an asset. Increases an asset and increases a liability. Increases an asset and increases equity.
Select a transaction that effects the accounting equation as follows: Effects a. The company purchases supplies for cash. b. The company purchases equipment for cash. c. The owner invests land in the business (in exchange for its stock). d. The company purchases supplies on credit. The company provides services and sent a bill for $500 to be received within 30 days. f. The company purchases equipment on credit. e. Transaction Decreases an asset and decreases a liability. Decreases an asset and decreases equity. Increases an asset and decreases an asset. Increases an asset and increases a liability. Increases an asset and increases equity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Select a transaction that effects the accounting equation as follows:
Effects
a. The company purchases supplies for cash.
b. The company purchases equipment for cash.
c. The owner invests land in the business (in exchange for its stock).
d. The company purchases supplies on credit.
The company provides services and sent a bill for $500 to be received within 30
days.
f. The company purchases equipment on credit.
e.
Transaction.
Decreases an asset and decreases a liability.
Decreases an asset and decreases equity.
Increases an asset and decreases an asset.
Increases an asset and increases a liability.
Increases an asset and increases equity.
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