Using the notion that the accounting equation (Assets = Liabilities + Stockholders' Equity)must remain in balance,indicate whether each of the following transactions is possible.
(a)Cash decreases; Accounts Payable decreases.
(b)Salaries Expense increases; Salaries Payable decreases.
(c)Accounts Receivable decreases; Service Revenue increases.

Question

Quizplus · Accepted Answer

The Answer of Using the notion that the accounting equation (Assets = Liabilities + Stockholders' Equity)must remain in balance,indicate whether each of the following transactions is possible.
(a)Cash decreases; Accounts Payable decreases.
(b)Salaries Expense increases; Salaries Payable decreases.
(c)Accounts Receivable decreases; Service Revenue increases.

Using the Notion That the Accounting Equation (Assets = Liabilities