Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 28 - No. 39)
When a company pays cash for advertising expense, what will happen to the accounting equation?
Assets increase, liabilities increase.
Assets decrease, liabilities decrease.
Assets decrease, equity decreases.
Assets increase, equity increases.
Explanation
Cash (an asset) decreases, and advertising expense (decreasing equity) increases.
Comments (0)
