Several Transactions Are Listed

question 168

Short Answer

Several transactions are listed. Use the choices to identify the effect on the accounting equation for each transaction listed. (Choices may be used more than once.)
a.Assets and liabilities increase
b.Assets and contributed capital increase
c.Assets and retained earnings increase
d.Two asset accounts are impacted, but there is no net effect on total assets
e.Assets and liabilities decrease
f.Assets and retained earnings decrease
g.Liabilities increase and retained earnings decrease
h.Liabilities decrease and retained earnings increase
-Purchasing insurance for 1 year

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Definitions:

Abstinence Syndrome

A characteristic cluster of symptoms that results from a sudden decrease in the level of usage of a substance.

Sudden Decrease

An abrupt reduction or drop in a quantity or quality, which can relate to anything from financial markets to personal health.

Conventional Thought

A stage of cognitive development where individuals' reasoning becomes based on conformity to social standards, rules, and laws.

Social Conventions

Agreed-upon norms and behaviors that govern interactions within a society, providing a framework for social order.