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A Company's First Transaction in 2012 Was to Pay $7500

Question 31

Multiple Choice

A company's first transaction in 2012 was to pay $7500 cash for wages earned and recognised as an expense in 2011.Which of the following changes took place as a consequence of that transaction?


A) Revenue decreased by $7500.
B) Liabilities decreased by $7500.
C) Profit decreased by $7500.
D) Assets increased by $7500.

Correct Answer:

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