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For Each Transaction Identify the Effect on the Accounting Equation

Question 127

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For each transaction identify the effect on the accounting equation, You may use each choice more than once or not at all.

Premises:
Received payment from a customer for amount owed from a previous accounting period
Provided computer services to customers on account
Used supplies in the regular operations of the business
Used up part of the service potential of the computer equipment
Hired a new office manager to start to work next week
Responses:
Debit assets and credit liabilities
Debit assets and credit contributed capital
Debit assets and credit revenue
Debit retained earnings and credit assets
Debit contributed capital and credit assets
Debit expenses and credit assets
Debit one asset and credit another asset
Not communicated by the formal accounting system

Correct Answer:

Debit assets and credit liabilities
Debit assets and credit contributed capital
Debit assets and credit revenue
Debit retained earnings and credit assets
Debit contributed capital and credit assets
Debit expenses and credit assets
Debit one asset and credit another asset
Not communicated by the formal accounting system
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