Transactions a, c, and e did not result in an expense. Match each transaction (a, c, and e) with one of the following reasons for not recording an expense. - This transaction is a distribution of cash to the owner. Even though equity decreased, thatdecrease did not occur in the process of providing goods or services to customers.- This transaction decreased cash in settlement of a previously existing liability (equity did notchange). Supplies expense is recorded when assets are used, not necessarily when cash is paid.. This transaction involves the purchase of an asset. The form of the company's assets changed,but total assets did not (and neither did equity).

Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Answered: - This transaction is a distribution of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Transactions a, c, and e did not result in an expense. Match each transaction (a, c, and e) with one of the following reasons for not recording an expense.

- This transaction is a distribution of cash to the owner. Even though equity decreased, that
decrease did not occur in the process of providing goods or services to customers.
- This transaction decreased cash in settlement of a previously existing liability (equity did not
change). Supplies expense is recorded when assets are used, not necessarily when cash is paid.
. This transaction involves the purchase of an asset. The form of the company's assets changed,
but total assets did not (and neither did equity).

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