Consider the transactions listed. Match them to the financial statement effects listed
-Pay wages with cash
A) Increase assets and increase liabilities
B) Decrease liabilities and decrease assets
C) Decrease assets and decrease equity
D) Decrease assets and increase assets

Question

Quizplus · Accepted Answer

Paying wages with cash decreases assets (cash) and decreases equity (expenses increase, reducing net income and thus equity).

Consider the Transactions Listed