Assets Expenses Income Liability - Accounting Principles by ClassOf1

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Multiple questions on accounting principles : Which of the following transactions decreases assets and liabilities?

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									              Sub: Accounts                                                            Topic: Accounting Principles



              Question:
              Multiple questions on accounting principles

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              Choose the correct answer from the given option.

              Solution:
              1.   Joe's Appliances purchased inventory for $12,800 on credit. This transaction:
                        a. increased accounts payable and inventory
                        b. increased inventory and decreased accounts receivable
                        c. increased inventory and accounts receivable
                        d. increased inventory and decreased accounts payable

                        Correct answer: a

              2. Music Land sold goods for $4,800 on credit. This transaction:
                     a. increased accounts payable and owners' equity
                     b. increase
								
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