If an expense is paid for in cash,then
A)liabilities will decrease.
B)assets will decrease.
C)assets will increase.
D)equity will increase.

Question

Quizplus · Accepted Answer

If an expense is paid for in cash, then it means that cash is being used to purchase the expense. This will result in a decrease in assets because the cash is leaving the company. However, it will not have any effect on liabilities or equity.

If an Expense Is Paid for in Cash,then