Question

1 Homework Saved Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not india Select a transaction that effects the accounting equation as follows: X Answer is complete but not entirely correct. b с Effects The company pays cash toward an account payable The company purchases equipment on credit The owner invests cash in the business The owner withdraws cash from the business. The company purchases supplies for cash The company provides services for cash Transaction Decreases an asset and decreases a liability Increases an asset and increases a liability Increases an asset and increases equity Decreases an asset and decreases equity Increases an asset and decreases an asset. Increases an asset and increases a liability d е f. x Prey 7 of 19 HE Next

I dont know why the last part is incorrect

Answer 1

AS YOU ASKED ME TO CHECK THE LAST PART , I HAVE CORRECTED THE ERROR , THANKYOU.

(f) THE COMPANY PROVIDES SERVICES FOR CASH - INCREASE IN ASSET AND INCREASE IN   EQUITY .

REASON - BECAUSE PROVIDING SERVICE IS A REVENUE FOR THE ORGANISATION , SO IF THERE IS AN INCREASE IN REVENUE IT IS ADDED TO EQUITY AND ASSET (CASH). REVENUE IS NOT A LIABILITY BECAUSE THE ORGANISATION DOESN'T HAVE TO PAY IT OFF .