If a Company Has Excess Space in Its Building That

question 30

Multiple Choice

If a company has excess space in its building that it rents to another company for $700,what is the effect on the accounting equation when the first rent payment is collected?

• A)Assets would decrease $700 and liabilities would decrease $700.
• B)Assets would decrease $700 and equity would increase $700.
• C)Assets would increase $700 and equity would decrease $700.
• D)Assets would increase $700 and equity would increase $700.
• E)Liabilities would decrease $700 and equity would increase $700.

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