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

Name: If expenses, in a proprietorship, are paid in cash, then A) assets will increase. B) liabilities will decrease. C) owner's equity will increase. D) assets will decrease.
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Question

Quizplus · Accepted Answer

When expenses are paid in cash in a proprietorship, the cash account, which is an asset, decreases. This results in a decrease in total assets.

If Expenses, in a Proprietorship, Are Paid in Cash, Then