Conner Sales' total assets and total liabilities increased $3,400. The transaction could have been:
A) purchase of supplies for cash, $3,400.
B) purchase of supplies for $3,700 with a down payment of $300 and the remainder on account.
C) paid the rent for the month, $3,400.
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

The purchase of supplies for $3,700 with a down payment of $300 and the remainder on account increases both assets (supplies) and liabilities (accounts payable) by $3,400.

Conner Sales' Total Assets and Total Liabilities Increased $3,400