Speedy Window Cleaning paid Southern Cleaning Supplies $1500 which was owed for cleaning supplies previously purchased. Which of the following represents the effect on the accounting equation?
A) Decrease in assets of $1500; decrease in equity of $1500.
B) Increase in assets of $1500; decrease in assets of $1500.
C) Increase in assets of $1500; increase in liabilities of $1500.
D) Decrease in liabilities of $1500; decrease in assets of $1500.
Correct Answer:
Verified
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