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Trout CoOrdered and Received Inventory Worth $45,000 on Credit

Question 58

Multiple Choice

Trout Co.ordered and received inventory worth $45,000 on credit.What is the effect of this transaction on the accounting equation?


A) Assets increases by $45,000 and liabilities increases by $45,000.
B) Assets increases by $45,000 and liabilities decreases by $45,000.
C) Assets decreases by $45,000 and liabilities increases by $45,000.
D) Assets decreases by $45,000 and liabilities decreases by $45,000.

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