Friday, October 9, 2020

On September 10, MFP Co. paid employee salaries of $7,000 owed to its employees last month. What are the effects of this transaction on the accounting equation?

On September 10, MFP Co. paid employee salaries of $7,000 owed to its employees last month. What are the effects of this transaction on the accounting equation?


A) Expenses increase and liabilities increase.

B) Assets decrease and liabilities decrease.

C) Assets decrease and expenses decrease.

D) Expenses decrease and liabilities decrease.


Answer: B

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