Learning: Accounting Concepts and Procedures

QUESTION $1$

ANSWER

A business pays $$500$ for the current month's rent on its office. Which of the following would be the correct effect on the balance sheet equation?

Decrease in assets $($cash$)$ and decrease in owner's equity $($rent expense$)$

Decrease in assets $($cash$)$ and increase in liabilities $($rent payable$)$

Decrease in assets $($cash$)$ and decrease in liabilities $($rent payable$)$

Increase in assets $($rent$)$ and decrease in owner's equity $($rent expense$)$

I DON'T KNOWYET