Match Each Transaction with Its Effect on the Accounting Equation

question 138

Multiple Choice

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Used up supplies that were already on hand

• 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:

Government Regulations

Rules established by government agencies aimed at controlling the way businesses operate.

Outsourcing

The transferring of manufacturing or other tasks—such as data processing—to countries where labor and supplies are less expensive.