Question

A company buys repair service on credit from Roofing Inc. As a result: Select one: a....

A company buys repair service on credit from Roofing Inc. As a result:

Select one:

a. An expense increases and a liability decreases

b. An expense increases and a liability increases

c. An expense decreases and a liability increases

d. An expense decreases and a liability decreases

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Answer #1

When repairs service buys on credit that means

Repair service (expense) = Increase

Account payable (liabilities) = Increase

So answer is b) An expense increases and a liability increases

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