For the Following Transaction,identify the Type of Change That Would

question 41

Multiple Choice

For the following transaction,identify the type of change that would have occurred in the accounting equation: Assets = Liabilities + Issued Capital + Opening retained profits + Revenue - Expenses - Dividends
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A cheque was drawn to pay an account payable.

• A) A liability increased and another liability decreased.
• B) An asset decreased and a liability decreased.
• C) An asset decreased and an expense increased.
• D) None of the above is correct.

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