Identify the effect of the account titles in the following transaction choose from the word inside the parenthesis. Support your answer. 1. If assets are recorded on the debit it (increases or decreases)? Why? 2. If liabilities are recorded on the debit side, (increases or decreases)? Why? 3. What happen to capital if there is an income? (increases, decreases)? Why? 4. What happen to capital if there is an expense? (increases, decreases)? Why? 5. If there is an owners' drawing, it is (deducted or added) to capital? Why?

Identify the effect of the account titles in the following transaction choose from the word inside the parenthesis. Support your answer. 1. If assets are recorded on the debit it (increases or decreases)? Why? 2. If liabilities are recorded on the debit side, (increases or decreases)? Why? 3. What happen to capital if there is an income? (increases, decreases)? Why? 4. What happen to capital if there is an expense? (increases, decreases)? Why? 5. If there is an owners' drawing, it is (deducted or added) to capital? Why?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 26MC: What is the impact on the accounting equation when an accounts receivable is collected? A. both...

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