If expenses are paid in cash, then
A) assets will increase.
B) liabilities will decrease.
C) stockholders' equity will increase.
D) assets will decrease.

Name: If expenses are paid in cash, then A) assets will increase. B) liabilities will decrease. C) stockholders' equity will increase. D) assets will decrease.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

When expenses are paid in cash, it means that cash is being taken out of the company's assets. This decreases the amount of assets the company holds.

If Expenses Are Paid in Cash, Then