Goods purchased for cash is an example of __________.

Increase in Asset & Owner's Liability

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No change in total assets and total liability.

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Increase in Liability & Owner's Liability

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Decrease in Liability & Increase in Owner's Liability

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Increase in Liability & Decrease in Owner's Liability

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Solution

The correct option is B No change in total assets and total liability.
cash will be reduced and stock will increase so there will be no change in the assets or liabilities.

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Similar questions

Q. Give one example of each of the following transactions:
(i) Increase in an asset and a liability.
(ii) Decrease in an asset and a liability.
(iii) Increase in assets and capital.
(iv) Decrease in assets and capital.

Give an example for each of the following types of transaction.
(i) Increase in one asset, decrease in another asset.
(ii) Increase in asset, increase in liability.
(iii) Increase in asset, increase in owner's capital.
(iv) Decrease in asset, decrease in liability.
(v) Decrease in asset, decrease in owner's capital.
(vi) Decrease in liabilities, increase in owner's capital.
(vii) Increase in one liability, decrease in another liability.
(viii) Increase in liabilities, decrease in owner's capital.

Q. Which of the following, equations properly represents a derivation of the fundamental accounting equation?
(a) Assets + Liabilities = Owner Equity
(b) Asset = Owner Equity
(c) Cash = Assets
(d) Assets - Liabilities = Owner Equity

Q. A summary record of the changes in a particular asset, liability or owners equity is known as _________.

Q. If the owners equity is Rs.

80, 000

and external liability Rs.

40, 000

, Cash in hand Rs.

20, 000

, the other assets of the firm will be ____________.

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Goods purchased for cash is an example of __________.

The correct option is B No change in total assets and total liability.cash will be reduced and stock will increase so there will be no change in the assets or liabilities.

The correct option is B No change in total assets and total liability.
cash will be reduced and stock will increase so there will be no change in the assets or liabilities.