Match Each Transaction with Its Effect on the Accounting Equation

Multiple Choice

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Paid cash for the purchase of a one-year insurance policy

A) Increase assets, increase liabilities
B) Increase liabilities, decrease owner's equity
C) Increase assets, increase owner's equity
D) No effect
E) Decrease assets, decrease liabilities
F) Decrease assets, decrease owner's equity