Which of the Following Transactions Will Cause Both the Left

question 50

Multiple Choice

Which of the following transactions will cause both the left and right side of the accounting equation to decrease?

• A)Collecting cash from a customer who owed us money.
• B)Paying a supplier for inventory we previously purchased on account.
• C)Borrowing money from a bank.
• D)Purchasing equipment using cash.

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Definitions:

Idea Generation

The creative process of coming up with new ideas, often the first step in the development of new products or strategies.

Rejecting Goods

The act of a buyer refusing to accept delivery of products or services because they do not meet the specified requirements or standards.

Services

Intangible actions or performances that one party can offer to another that does not result in the ownership of anything.

Intangible Products

Goods that cannot be seen, touched, or physically measured, such as services or digital products.