Solved

Payment Is Made for Machinery Purchases Previously on Credit

Question 141

Multiple Choice

Payment is made for machinery purchases previously on credit. What effect does this transaction have on the accounting equation?


A) Assets and liabilities increase.
B) Assets and contributed capital increase.
C) Liabilities decrease and retained earnings increase.
D) Assets and liabilities decrease.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions