Question

indow Help 37% D Wed 7: Dsa Student Grades for Janaina Fernando: 6192-ACCT-2301-Prin of Financial Saved Help Save& Exit Submi MC Qu. 190 If a company has excess... If a company has excess space in its building that it rents to another company for $700, what is the effect on the accounting equation during the first month? Multiple Choice Assets would decrease $700 and liabilieies would decrease $700 Assets would decrease $700 and equity would increase $700. Assets would increase $700 and equity would decrease $700 Assets would increase $700 and equity would increase $700 < Prev10 of t0 Next 5 6 8 9 0

Answer 1

Solution:

If company rent excess space of building to another company for $700, effect on accounting equation is "Assets would increase $700 and equity would increase $700"

Hence last option is correct.