If an entrepreneur starts a business with $20 000 of their own money, what is the effect on the accounting equation?
A) Liabilities increase; equity decreases.
B) Assets increase; equity increases.
C) Assets increase; liabilities increase.
D) None of the above.
Correct Answer:
Verified
Q58: Which of the following best describes an
Q59: An example of a liability is:
A) Amounts
Q60: The accounting equation:
A) requires equilibrium of resources
Q61: The dual effect of transactions means:
A) every
Q62: Which of the following is true?
A) Revenue
Q64: If an entity pays for one year's
Q65: The accounting period is:
A) a month.
B) a
Q66: The principle that the entity is able
Q67: Which of the following best describes an
Q68: Which of the following best describes depreciation?
A)
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