If a company receives $10,800 from the owner to establish a proprietorship, the effect on the accounting equation would be: Multiple Choice Assets increase $10,800 and equity increases $10,800. Liabilities increase $10,800 and equity decreases $10,800. Assets increase $10,800 and liabilities decrease $10,800. Assets decrease $10,800 and equity decreases $10,800.
If a company receives $10,800 from the owner to establish a proprietorship, the effect on the accounting equation would be: Multiple Choice Assets increase $10,800 and equity increases $10,800. Liabilities increase $10,800 and equity decreases $10,800. Assets increase $10,800 and liabilities decrease $10,800. Assets decrease $10,800 and equity decreases $10,800.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter1: Accounting As A Form Of Communication
Section: Chapter Questions
Problem 1.4E: The Accounting Equation Ginger Enterprises began the year with total assets of $500,000 and total...
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