Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Paid wages
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

Question

Quizplus · Accepted Answer

Paying wages decreases assets (cash goes out) and decreases owner's equity (expenses reduce equity).

Match Each Transaction with Its Effect on the Accounting Equation