A business pays $500 cash for their electricity bill. What effect does this transaction have on the

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A business pays $500 cash for their electricity bill.

What effect does this transaction have on the accounting equation?

A. a decrease in the asset cash of $500 and a decrease in the liability accounts payable of $500.

B. an increase in the asset cash of $500 and a decrease in profit or loss of $500 to record the electricity expense.

C. a decrease in the asset cash of $500 and an increase in profit or loss of $500 to record the electricity expense.

D. a decrease in the asset cash of $500 and a decrease in profit or loss of $500 to record the electricity expense.

Related Book For answer-question

Survey of Accounting

ISBN: 978-0073379555

2nd edition

Authors: Edmonds, old, Mcnair, Tsay

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Posted Date: Mar 31, 2022 06:17 AM

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A business pays $500 cash for their electricity bill. What effect does this transaction have on the

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Answer Option D a decrease in asset cash of 500 and a de... View the full answer

Survey of Accounting

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