A common business transaction that would not affect the amount of owners' equity is
A) signing a note payable to purchase equipment.
B) payment of property taxes.
C) billing of customers for services rendered.
D) payment of dividends.

Question

Quizplus · Accepted Answer

Signing a note payable to purchase equipment is a transaction that affects liabilities (by increasing them) and assets (by increasing them as well), but it does not directly affect the owner's equity.

A Common Business Transaction That Would Not Affect the Amount