Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation?
a. Assets increase by $75,000 and expenses increase by $75,000.
b. Assets increase by $75,000 and expenses decrease by $75,000.
c. Liabilities increase by $75,000 and expenses decrease by $75,000.
d. Assets decrease by $75,000 and expenses decrease by $75,000.
e. Assets increase by $75,000 and liabilities increase by $75,000.
Answer: e. Assets increase by $75,000 and liabilities increase by $75,000.
You might also like to view...
For an individual to exercise expert power in an organization, he/she most likely also has:
A) charisma power. B) social influence power. C) expert power. D) legitimate power.
EPA regulations permit the release of 150 micrograms of particulate matter per cubic meter of air every 24 hours from paint shops. Utilimotors, a utility truck maker, monitors its emissions so it releases between 140 and 150 micrograms
Which approach of green management does Utilimotors use? A) legal approach B) market approach C) stakeholder approach D) activist approach