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Speedy Window Cleaning Paid $120 of Advertising for the Month

Question 56

Multiple Choice

Speedy Window Cleaning paid $120 of advertising for the month with Cheque No. 000221. Ignore GST. Which of the following reflects the effect on the accounting equation?


A) Decrease in equity of $120; increase in assets of $120.
B) Decrease in equity of $120; decrease in assets of $120.
C) Increase in assets of $120; increase in liabilities of $120.
D) Decrease in assets of $120; increase in equity of $120.

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