Which of the following is correct when a corporation uses cash to pay for an expense?
A)Total assets will decrease.
B)Retained earnings will increase.
C)Owners' equity will increase.
D)Liabilities will increase.

Question

Quizplus · Accepted Answer

When a corporation uses cash to pay for an expense, the total assets of the corporation will decrease. This is because cash is an asset and when it is used to pay for an expense, its value decreases and thus the value of total assets of the corporation also decreases.

Which of the Following Is Correct When a Corporation Uses