Question

QUESTION 6 Using the following key, indicate how the following transactions affect the accounting equation: Record monthly credit sales. OA. A Increase Assets and Increase SHE B Increase Assets and Increase Liabilities ?. Decrease Assets and Decrease Liabilities O Increase in Liabilities and Decrease in SHE OE Decrease in Liabilities and Increase in SHE OF No effect on the accounting equation QUESTION 7 Using the following key, indicate how the following transactions affect the accounting equation: Record employee salaries that have been earned, but will be paid at a later date. A Increase Assets and Increase SHE B Increase Assets and Increase Liabilities ?? Decrease Assets and Decrease Liabilities Increase in Liabilities and Decrease in SHE E. Decrease in Liabilities and Increase in SHE OF. No effect on the accounting equation

Answer 1

option - (A): increases assets and increases SHE reason: while recording monthly sales, cash account shall be debited if it cash sales, accounts receivable shall be debited if it is sales, on account .as a result ,asset will be increased while recording monthly sales, sales account shall be credited whether it is cash sales or sales on account .As a result it will increases Shareholder's Equity (SHE).