On 1 March Speedy Window Cleaning pays $1200 in cash for the March rent of its business premises. Which of the following is the effect on the accounting equation?
A) Decrease in cash at bank $1200; decrease in liability accounts payable $1200.
B) Decrease in cash at bank $1200; increase in liability accounts payable $1200.
C) Decrease in cash at bank $1200; decrease in equity $1200.
D) Decrease in cash at bank $1200; increase in equity $1200.
Correct Answer:
Verified
Q50: Which of these effects of a single
Q51: Liz, after qualifying at university and having
Q52: Historical cost is widely used for asset
Q53: Which assumption is the basis upon which
Q54: In order to prepare financial information for
Q56: The concept which permits information to be
Q57: The extent to which items in accounting
Q58: The assumption which assumes that the entity
Q59: Accountants divide the life of the business
Q60: Jane is an accountant operating as a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents