Paying expenses affects which financial statement elements?
A) Assets only
B) Stockholders' equity only
C) Assets and stockholders' equity
D) Assets and liabilities

Question

Quizplus · Accepted Answer

Paying expenses decreases assets (cash or other assets used to pay the expense) and decreases stockholders' equity (as expenses reduce net income, which is a component of equity).

Paying Expenses Affects Which Financial Statement Elements