Conner Sales' total assets and total liabilities increased $600.The transaction could have been:
A)purchase of supplies for cash,$400.
B)purchase of supplies for $800 with a down payment of $200 and the remainder on account.
C)paid the rent for the month,$700.
D)None of these answers is correct.

Question

Quizplus · Accepted Answer

Option B involves both a cash payment (down payment of $200) and an increase in accounts payable (remainder paid on account), which would result in an increase in both total assets and total liabilities by $600. The other options do not involve a change in liabilities or do not total to a $600 increase in assets and liabilities.

Conner Sales' Total Assets and Total Liabilities Increased $600