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:

Goods And Services

The products (goods) and activities (services) offered in the market for purchase, representing the output of an economy’s production.

Operating Costs

Operating costs are expenses associated with the day-to-day functions of a business, including costs for goods, services, rent, and salaries.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business.

Construction

The process or activity of building structures such as houses, roads, and buildings.