Match Each Transaction with Its Effect on the Accounting Equation

question 146

Multiple Choice

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Paid cash for the purchase of a one-year insurance policy

• A)Increase assets, increase liabilities
• B)Increase liabilities, decrease owner's equity
• C)Increase assets, increase owner's equity
• D)No effect
• E)Decrease assets, decrease liabilities
• F)Decrease assets, decrease owner's equity

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Definitions:

Possible Outcomes

Various end results or consequences that may occur as a result of specific actions or decisions in a given scenario.

Directed Remembering

A task in which individuals are instructed to remember information in a controlled or specific manner.

Goal-driven

Activities or behaviors that are motivated by a specific, desired outcome, often requiring planning and decision-making to achieve.

Memory Searching

The process by which individuals try to retrieve specific information or memories from their long-term memory.