Ask Question
BusinessBusiness
28 September, 10:10

All business transactions can be stated in terms of a. changes in cash. b. changes in owner's equity. c. changes in the elements of the accounting equation. d. None of these choices are correct.

+3
Answers (1)
  1. 28 September, 11:13
    0
    c. changes in the elements of the accounting equation.

    Explanation:

    Accounts have a standard equation, where

    Assets = Liabilities + Stockholder's Equity

    Whenever, there is an accounting transaction that transaction must be represented in numerical values, but it is not necessary that the transactions shall have a cash effect.

    As for example, sale of products on credit will not involve cash.

    An acquisition of fixed asset on credit will not impact the owner's equity, as with increase in asset there is equal increase in liability and accordingly, no change in owner's equity.

    There is always a change in elements of accounting equation.

    As for sale on credit there will be a change in assets in the form of receivables and change in stockholder's equity as increase in revenue would lead to increase in retained earnings.

    Therefore, Statement C is correct

    c. changes in the elements of the accounting equation.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “All business transactions can be stated in terms of a. changes in cash. b. changes in owner's equity. c. changes in the elements of the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The statement of owner's equity shows a. only net income, beginning capital, and withdrawals b. only net income, beginning and ending capital c. only total assets, beginning and ending capital d.
Answers (1)
3. How do global factors influence the economy in your country?
Answers (1)
The inaccuracy of the grapevine has more to do with the message output than with the input. a. True b. False
Answers (2)
On October 1, 2016, Flounder Corp. issued $780,000, 9%, 10-year bonds at face value. The bonds were dated October 1, 2016, and pay interest annually on October 1. Financial statements are prepared annually on December 31.
Answers (1)
Lenny bought a computer from Computer Store for $1,000. For an additional $100, the store delivered the computer, connected up the various devices, and transferred Lenny's files from his old computer.
Answers (1)
New Questions in Business
What does a clean kitchen show an inspector about a restaurant? a. a clean kitchen shows that the person in charge is working their shift. b. clean kitchens show that the team is healthy and not sick. c.
Answers (1)
Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $10) $ 160,000 Direct materials and direct labor $ 96,000 Overhead (20% variable) 16,000 Selling and administrative expenses (all fixed) 32,000
Answers (1)
In order to achieve a high economic freedom rating, what should a country do?
Answers (1)
Find the ordinary time of a loan made on March 10 and due on May 10. 30 days 60 days 61 days 62 days
Answers (1)
Javier's employer pays for 43% of his annual health insurance premium. Javier pays the remaining balance by having it deducted from his paychecks in equal amounts twice a month throughout the year. If $157.
Answers (1)
Home » Business » All business transactions can be stated in terms of a. changes in cash. b. changes in owner's equity. c. changes in the elements of the accounting equation. d. None of these choices are correct.
Sign Up Forgot Password?