Question

When a company pays rent expense for the current period, how will the basic accounting equation...

When a company pays rent expense for the current period, how will the basic accounting equation be affected?

A) Liabilities decrease.

B) Revenues decrease.

C) Expenses decrease.

D) Stockholder’s equity decreases.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1/ Bobby Company made payment on rent owed by erroneously increasing rent      expense and properly...
1/ Bobby Company made payment on rent owed by erroneously increasing rent      expense and properly decreasing cash. An accrual entry for rent expense had        previously been properly recorded by debiting rent expense and crediting rent             payable. Which of the following is/are true?    Net income is overstated.         B.   Prepaid rent is overstated.    Rent expense is understated.   D.   Rent payable is overstated.    All of the above are true. 2/ John Company pays four months’ rent at $800 per month...
1.Determine the increases and decreases in the five accounting types. Purchased inventory of $3,500 on account....
1.Determine the increases and decreases in the five accounting types. Purchased inventory of $3,500 on account. Assets increase, liabilities increase. Assets decrease, liabilities increase. Assets decrease, equity decreases, expenses increase. Liabilities decrease, equity increases, revenues increase. 2.Determine the increases and decreases in the five accounting types. Sold inventory costing $800, for $1,500 cash. Assets increase, liabilities increase. Assets increase, liabilities increase, revenues increase. Assets decrease, equity decreases, expenses increase. Assets increase, equity increases, revenues increase, expenses increase. 3. Determine the...
11) The accounting equation is defined as: A) Assets = Liabilities + Stockholders' Equity. B) Assets...
11) The accounting equation is defined as: A) Assets = Liabilities + Stockholders' Equity. B) Assets = Liabilities − Stockholders' Equity. C) Net Income = Revenues − Expenses. D) Liabilities + Revenues = Assets.
Saturn, Inc. paid $ 5,000 on accounts payable. How does this transaction affect the accounting equation...
Saturn, Inc. paid $ 5,000 on accounts payable. How does this transaction affect the accounting equation of​ Saturn? A. assets decrease by $5,000 and equity increases by $5,000 B. assets decrease by $5,000 and liabilities decrease by $5,000 C. assets increase by $5,000 and liabilities increases by $5,000 D. assets increase by $5,000 and equity decreases by $5,000
Match the combination of changes in the accounting equation described below with the events listed below....
Match the combination of changes in the accounting equation described below with the events listed below.             A) Assets increase; Assets decrease B) Assets increase; Liabilities increase C) Assets increase; Owner's equity increase D) Assets decrease; Liabilities decrease E) Assets decrease; Owner's equity decrease F) Liabilities increase; Liabilities decrease G) Liabilities increase; Owners' equity decreases H) Liabilities decrease; Owners' equity increases I) Owners' equity increases; Owners' equity decreases J) Not recorded in accounting system             Borrowed cash       [...
When using the allowance method, what are the effects on the accounting equation when a company...
When using the allowance method, what are the effects on the accounting equation when a company writes off a bad debt? a.Assets and stockholders' equity increase. b.Assets and stockholders' equity decrease. c.There is no effect on overall assets or equity. d.Assets increase and stockholders' equity decreases.
Blue Company collected $2,000 cash for work completed. The effects on the accounting equation are: A....
Blue Company collected $2,000 cash for work completed. The effects on the accounting equation are: A. total assets decrease, and equity increases B. both total assets and total liabilities decrease C. total assets, total liabilities, and equity are unchanged D. both total assets and equity are unchanged E. total assets increase and equity increases
What are the effects on a company's accounting equation when it records merchandise purchased for cash?...
What are the effects on a company's accounting equation when it records merchandise purchased for cash? A. Assets and liabilities increase B. Total assets remain unchanged C. Assets and stockholders' equity decrease D. Assets and stockholders' equity increase
Accrual accounting: A. is the system of accounting that records revenues in the accounting period in...
Accrual accounting: A. is the system of accounting that records revenues in the accounting period in which they are earned and expenses in the accounting period in which the resources are used. B. is the system of accounting that records revenues in the period in which cash payment is received and expenses in the accounting period when payment is made. C. is not a form of accounting D. is the accounting policy requiring that onces the proper accounting treatment for...
A) Which of the following statements is true? A. A credit to Utilities Expense would decrease...
A) Which of the following statements is true? A. A credit to Utilities Expense would decrease Retained Earnings. B. Cash, Dividends, Accumulated Depreciation, and Wage Expense all have debit balances. C. Expenses are increased with a debit, and decrease stockholders’ equity. D. The issuance of stock decreases a company’s assets and increases its stockholders’ equity. E. If a company purchases inventory on account, its total assets will not change. B) A company completes a job for which it had previously...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT