Which of the following demonstrates that the company's resources equal creditor's claims plus owners' claims to those resources?

A business purchases $500 of office supplies on account. What is the effect on the accounting equation?

A) Office Supplies increase and Cash decreases. B) Office Supplies increase and Accounts Payable increase. C) Office Supplies increase and Accounts Payable decrease. D) Total assets increase and total liabilities decrease.

Which of the following actions is LEAST LIKELY to promote high quality customer service?

A) enacting strict operating guidelines B) empowering salespeople C) giving promotion based on performance D) ensuring employees receive a decent salary