For the following transaction,identify the type of change that would have occurred in the accounting equation: Assets = Liabilities + Issued Capital + Opening retained profits + Revenue - Expenses - Dividends
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A new CEO was appointed to commence in 3 months' time on a salary of $400 000 per annum.
A) A liability increased and another liability decreased.
B) An asset decreased and a liability decreased.
C) An asset increased and revenue increased.
D) This had no effect on the accounting equation.

Question

Quizplus · Accepted Answer

The appointment of a new CEO has no immediate effect on the accounting equation. It only represents a future expense which will influence the equation once it is actually incurred.

For the Following Transaction,identify the Type of Change That Would