Ask Question
26 May, 23:09

Describe a transaction that would:a. Increase both an asset and capital stock. b. Increase both an asset and a liability. c. Increase one asset and decrease another asset. d. Decrease both a liability and an asset. e. Increase both an asset and retained earnings. f. Decrease both an asset and retained earnings.

+4
Answers (1)
  1. 26 May, 23:14
    0
    a. Increase both an asset and capital stock.

    Issuance of common stock increases the cash as assets and common stock as a capital stock.

    b. Increase both an asset and a liability.

    Supplies purchased on account increases the Inventory as an asset and Increases the payable as a liabilities.

    c. Increase one asset and decrease another asset.

    Maturity of an Investment in debt instrument, Increases the cash as an asset and decreases the investment as another asset.

    d. Decrease both a liability and an asset.

    Payment to supplier decrease the account payable as a liabilities and cash as an asset.

    e. Increase both an asset and retained earnings.

    Cash Sales Increases the cash as an asset and Net profit as a retained earning.

    f. Decrease both an asset and retained earnings.

    Sales return decreases the account receivable as an asset and net profit as a retained earning.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Describe a transaction that would:a. Increase both an asset and capital stock. b. Increase both an asset and a liability. c. Increase one ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers