Match Each Transaction with Its Effect on the Accounting Equation

question 44

Multiple Choice

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Paid part of an amount owed to a creditor

• 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:

Merger

The combination of two or more entities into one, usually referring to corporations, to achieve greater efficiencies or market share.

Construction Company

A business entity focused on the building of residential, commercial, or industrial structures, as well as infrastructure projects.

Workplace Bullying

Harassment or abusive behavior in a professional environment, targeting an individual or group, leading to psychological or emotional harm.

Malicious Rumors

False and damaging statements spread about someone, often with the intent to harm their reputation.