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a. liabilities increase and owner's equity increase
b.assets increase and assets decrease
c.assets increase and liabilities increase
d.assets decrease and liabilities decrease

2007-09-18 10:09:33 · 2 answers · asked by Anonymous in Business & Finance Other - Business & Finance

2 answers

The accounting equation:
Assets = Liabilities + Owner's Equity

My corporation made cash sales to customers.
Your entry would be:
Dr Cash
Cr Sales

so Assets and Owner's equity should both increase. It's odd that it's not one of the choices.

2007-09-18 16:47:57 · answer #1 · answered by Sandy 7 · 0 0

None of the above!!!!!

It would be: increase an asset and increase stock holders equity.

2007-09-18 16:59:44 · answer #2 · answered by fivestring46 4 · 0 0

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