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Explain How the Following General Journal Entry Affects the Accounting

Question 128

Multiple Choice

Explain how the following general journal entry affects the accounting equation. Explain how the following general journal entry affects the accounting equation. A) Both assets and equity increase. B) Both liabilities and assets increase. C) Assets increase and equity decreases. D) Liabilities increase and equity decreases.


A) Both assets and equity increase.
B) Both liabilities and assets increase.
C) Assets increase and equity decreases.
D) Liabilities increase and equity decreases.

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