Question

Ocean Breeze Co. paid $500 cash for expenses related to advertising for the period. Which of the following shows how this event will affect the company’s accounting equation? The letters "NA" indicate that the component of the equation is not affected.Assets = Liabilities + Common Stock + Retained Earnings
A. $500 = NA + NA + $500
B. ($500) = NA + NA + ($500)
C. NA = $500 + ($500)+ NA
D. ($500) = NA + ($500)+ NA

A. Option A
B. Option B
C. Option C
D. Option D

Answer 1

The answer is A because