For the Following Transaction, Identify the Type of Change That

question 20

Multiple Choice

For the following transaction, identify the type of change that would have occurred in the accounting equation: Assets = Liabilities + Share capital + Opening retained profits + Revenue - Expenses - Dividends
A payment was made to accounts payable.

• A) A liability increased and another liability decreased.
• B) An asset decreased and a liability decreased.
• C) An asset increased and revenue increased.
• D) An asset decreased and an expense increased.

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Definitions:

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate commerce with foreign nations, among the states, and with Indian tribes.

Interstate Commerce

Economic activities or transactions that cross state boundaries or have effects across state lines, regulated by the federal government.

Legislation

The act of making or enacting laws, usually carried out by a governmental body or legislature.

Enumerated Powers

Specific powers granted to the United States Congress by the Constitution, outlining the scope of legislative authority.