Venus, Inc. paid $12,000 on accounts payable. How does this transaction affect the accounting equation of Venus?
A) assets decrease by $12,000 and equity increases by $12,000
B) assets decrease by $12,000 and liabilities decrease by $12,000
C) assets increase by $12,000 and equity decreases by $12,000
D) assets increase by $12,000 and liabilities increase by $12,000
B
You might also like to view...
When a bond has been issued at a discount, the carrying value at the end of one period is equal to the carrying value at the beginning of the period minus the amount of discount that was amortized during the period
Indicate whether the statement is true or false
There is no assurance that the actual rate of return on an asset will be similar to the projected rate of return
Indicate whether the statement is true or false.
Under UCC Article 2, the buyer has an obligation to:
a. accept conforming goods b. pay for the goods according to the contract c. keep the goods for at least 3 months d. both a and b are correct e. both a and c are correct
Banks, independent investors, and government funds are all examples of _____ that can be approached to finance a small business.
A. venture capitalists B. strategic allies C. franchisers D. lenders E. SBA programs