Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Received utility bill to be paid next month
A)Increase assets, increase liabilities
B)Increase liabilities, decrease owner's equity
C)Increase assets, increase owner's equity
D)No effect
E)Decrease assets, decrease liabilities
F)Decrease assets, decrease owner's equity

Question

Quizplus · Accepted Answer

Receiving a utility bill to be paid next month would increase liabilities (as the company owes money to the utility company) and decrease owner's equity (as the company's assets are being used to pay for expenses).

Match Each Transaction with Its Effect on the Accounting Equation