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The Effect on the Accounting Equation of the Business Banking

Question 30

Multiple Choice

The effect on the accounting equation of the business banking $1000 of cash received from a debtor paying his account for an amount owing is:


A) increase the asset cash;increase profit and loss to record income
B) increase the asset cash;decrease the liability debtors
C) increase the asset cash;decrease the asset debtors
D) decrease the asset cash;decrease the profit and loss

Correct Answer:

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