In which of the following transactions or events are the debit entries NOT equal to the credit entries?
A) Wages owing are recorded as increasing an expense and decreasing an asset.
B) Credit purchase of inventory is recorded as increasing an asset and increasing a liability.
C) Cash sales are recorded as increasing revenue and increasing an asset.
D) Receipt from a customer is recorded as increasing an asset and decreasing another asset.

Question

Quizplus · Accepted Answer

In option A, recording wages owing as increasing an expense and decreasing an asset does not balance the accounting equation, as it should increase a liability (wages payable) instead of decreasing an asset.

In Which of the Following Transactions or Events Are the Debit