Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 46 - No. 35)

Which of the following are examples of transactions that would *increase* a liability?
Purchasing inventory on credit.
Receiving cash from a customer for services to be performed later.
Paying rent for the current month.
Collecting cash from a customer for services already performed.

Explanation

Purchasing inventory on credit and receiving cash in advance will increase liabilities.

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