The following are three business transactions. For each column, indicate whether the transactions increased, decreased, or had no effect on assets, liabilities, and stockholders’ equity.AssetsLiabilitiesStockholders’ Equity(a)Purchased supplies on account.Select an option Select an option Select an option  (b)Received cash for performing a service.Select an option Select an option Select an option  (c)Paid expenses in cash.

Which of the following is NOT possible for a business transaction?Group of answer choicesDecrease Liabilities and Decrease AssetsIncrease Assets and increase RevenueIncrease Liabilities and Increase Shareholder EquityIncrease Liabilities and increase Expense

An accounting transaction simultaneously decreases assets and equity. This transaction is explained by which of the following scenarios:Group of answer choicesAn asset was purchased with cash.Accounts Payable owed were paid with cash.An expense was incurred on credit.The owner withdrew cash from the business.Next

The fourth logical step to determine the result of a transaction is to classify the affected accounts as assets, liabilities or equity.Select one:TrueFalse

A common business transaction that would NOT affect the amount of owners' equity isGroup of answer choicessigning a note payable to purchase equipment.billing of customers for services rendered.payment of property taxes.owner’s withdrawal of cash

The following statements relate to the business transactions topic. Choose all of the statements that are false:Question 5AnswerDouble-entry accounting implies that business transactions have a dual effect on the elements of accounting.Both sides of the accounting equation must always be affected for a transaction to occur.Business events may affect a business but generally cannot be recorded.Since owner’s drawings involve the use of personal funds, they are never recorded in the business records.The size of a business may affect the type of accounting system they use.