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Using the notion that the accounting equation (Assets = Liabilities + Stockholders Equity) must remain in balance, indicate whether each

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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 increases; Accounts Payable decreases.

b. Service Revenue increases; Salaries Payable increases.

c. Advertising Expense increases; Cash decreases.


Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...

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Related Book For  answer-question
Financial Accounting

Financial Accounting

ISBN: 978-0078025549

3rd edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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Question Posted: July 15, 2014 03:26:58
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