Which of the following would increase assets and increase liabilities?
A)Provide services to customers on account.
B)Purchase office supplies on account.
C)Pay dividends to stockholders.

Question

Quizplus · Accepted Answer

Purchasing office supplies on account will increase assets (office supplies) and increase liabilities (accounts payable). Providing services on account would increase assets (accounts receivable) and increase equity (revenue earned). Paying dividends would decrease assets (cash) and decrease equity (retained earnings).

Which of the Following Would Increase Assets and Increase Liabilities