Multiple choice

What changes will be noticed in accounting equation for the transaction of purchased goods on credit?

A. Increase in Liabilities side. B. Decrease in Liabilities side. C. Increase in Assets side. D. Decrease in Assets side.

  1. A & D

  2. B & D

  3. A & C

  4. B & C
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Only purchase means no profit, so no impact on the value of profit (liabilities).

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