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Liula [17]
3 years ago
12

Presented below are three economic events. In each column, indicate whether the event increased, decreased, or had no effect on

assets, liabilities, and stockholders’ equity.
Assets Liabilities Stockholders’ Equity
(a) Purchased supplies on account. Entry field with incorrect answer DecreasedNo EffectIncreased Entry field with correct answer IncreasedNo EffectDecreased Entry field with incorrect answer DecreasedIncreasedNo Effect
(b) Received cash for providing a service. Entry field with correct answer IncreasedNo EffectDecreased Entry field with correct answer IncreasedNo EffectDecreased Entry field with incorrect answer No EffectIncreasedDecreased
(c) Expenses paid in cash. Entry field with incorrect answer IncreasedDecreasedNo Effect Entry field with incorrect answer DecreasedNo EffectIncreased Entry field with correct answer IncreasedDecreasedNo Effect
Business
1 answer:
Alex17521 [72]3 years ago
5 0

Answer:

(a) Purchased supplies on account.

Increase assets and liabilities

(b) Received cash for providing a service.

Increase assets and equity

(c) Expenses paid in cash.

Decrease assets and equity

Explanation:

(a) The company acquire an assets but to do so; it take a liability. In the future it will be forced to pay the credit given today

(b) The company receive an assets(cash) by prvoviding services which is the main activity. The equity represebt both, the owner investment and the earning of the business. In this case this is an earning so it increase equity

(c) The rgannizatioon used an asset to afford their obligation. This is a negative result thus; equity decrease

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