Which of the following transactions will cause both the left and right side of the equation to increase?
A) We collect cash from a customer who owed us money
B) We pay a supplier for inventory we previously bought on account
C) We borrow money from the bank
D) We purchase equipment for cash

Question

Quizplus · Accepted Answer

Borrowing money from the bank increases assets (cash) on the left side of the accounting equation and also increases liabilities (loan payable) on the right side, thus increasing both sides of the equation.

Which of the Following Transactions Will Cause Both the Left