The Accounting Equation for Ying Company Shows a Decrease in Its

question 229

Multiple Choice

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity.Which of the following transactions could have caused that effect?

• A)Cash was received from providing services to a customer.
• B)The company paid an amount due on credit.
• C)Equipment was purchased for cash.
• D)A utility bill was received for the current month,to be paid in the following month.
• E)Advertising expense for the month was paid in cash.

---

Definitions:

Leisure

free time when individuals are not working, available for relaxation or activities of personal choice.

Normal Good

A good for which demand increases as the income of consumers increases and vice versa.

Demand for Leisure

The desire for free time in which one can enjoy personal activities outside of work.

Labor Supply Curve

A graphical illustration of the relationship between the wage rate and the quantity of labor workers are willing to supply at various wage rates.