Explain how the following general journal entry affects the accounting equation.
A)Both assets and equity increase.
B)Both liabilities and assets increase.
C)Assets increase and liabilities decrease.
D)Liabilities increase and equity decreases.

Question

Explain how the following general journal entry affects the accounting equation. 
A)Both assets and equity increase. 
B)Both liabilities and assets increase. 
C)Assets increase and liabilities decrease. 
D)Liabilities increase and equity decreases.

Quizplus · Accepted Answer

A debit to supplies increases assets and a credit to accounts payable increases liabilities.

Explain How the Following General Journal Entry Affects the Accounting