Goods returned by a customer is an example of _____________________.

Increase in Asset & owner's liability

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Decrease in Asset & owner's 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 Decrease in Asset & owner's liability
Goods will increase and debtors will increase so, there will be no change in the assets or liabilities.

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Similar questions

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. 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.

Q. An obligation of the entity to owners is treated as a liability in the balance sheet according to __________.

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.

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Goods returned by a customer is an example of _____________________.

The correct option is B Decrease in Asset & owner's liabilityGoods will increase and debtors will increase so, there will be no change in the assets or liabilities.

The correct option is B Decrease in Asset & owner's liability
Goods will increase and debtors will increase so, there will be no change in the assets or liabilities.