Using the Notion That the Accounting Equation (Assets = Liabilities

question 36

Essay

Using the notion that the accounting equation (Assets = Liabilities + Stockholders' Equity)must remain in balance,indicate whether each of the following transactions is possible.
(a)Cash decreases;Accounts Payable decreases.
(b)Salaries Expense increases;Salaries Payable decreases.
(c)Accounts Receivable decreases;Service Revenue increases.

---

Definitions:

Accounting Report

Documents that summarize the financial performance and position of an entity, such as income statements and balance sheets.

SEC Approval

The official authorization from the Securities and Exchange Commission for various financial activities and filings, ensuring compliance with regulations.

Effective Accounting Information System

A system that accurately collects, records, stores, and processes financial data to produce information useful for decision-making.

Basic Principle

A foundational rule or concept that guides actions, decisions, or laws in a specific field or general context.