How does the payment of rent for equipment affect the accounting equation?
A) assets increase; assets decrease
B) assets decrease; stockholders' equity decreases
C) assets decrease; liabilities increase
D) assets increase; stockholders' equity increases

Question

Quizplus · Accepted Answer

Paying rent for equipment decreases assets (cash) and decreases stockholders' equity (retained earnings) as it is an expense.

How Does the Payment of Rent for Equipment Affect the Accounting