For each transaction numbered below, identify its effect on the accounting equation by selecting from a through h below.You may use each letter more than once or not at all.
-Used computer supplies in the regular operations of the business (acquired during a previous accounting period)
A) + A and + L
B) + A and + SE (Contributed Capital)
C) + A and + SE (Retained Earnings)
D) -A and - L
E) -A and - SE (Contributed Capital)
F) - A and - SE (Retained Earnings)
G) + A and - A
H) Not communicated by the formal accounting system

Question

Quizplus · Accepted Answer

Using computer supplies in operations (that were acquired in a previous period) decreases assets (the supplies are used up) and decreases retained earnings (as the expense of using the supplies reduces net income, which is part of retained earnings).

For Each Transaction Numbered Below, Identify Its Effect on the Accounting