Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 20 - No. 39)
What is the effect on the accounting equation when a company pays an employee's salary?
Assets increase, liabilities increase.
Assets decrease, liabilities increase.
Assets decrease, equity decreases.
Assets increase, equity increases.
Explanation
Cash (an asset) decreases, and salary expense (which decreases equity) increases.
Comments (0)
