Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 25 - No. 46)
What is the effect on the accounting equation when a business pays its telephone bill with cash?
Assets increase, liabilities increase.
Assets decrease, liabilities increase.
Assets decrease, equity decreases.
Assets increase, equity increases.
Explanation
Cash decreases (asset) and utilities expense (reducing equity) increases.
Comments (0)
