Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 28 - No. 22)
What is the impact of the bank transfer to settle an amount due to a supplier on Sept 6 on the accounting equation?
Increases assets and decreases liabilities.
Decreases assets and increases liabilities.
Decreases assets and decreases liabilities.
Increases assets and increases equity.
Explanation
The bank transfer decreases cash (an asset) and also decreases the amount owed to the supplier (a liability).
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