Asked by Benoit BOUDA on May 16, 2024
Verified
Ramierez Company received its first electric bill in the amount of $60 which will be paid next month. How will this transaction affect the accounting equation?
Electric Bill
A monthly charge for the consumption of electricity, typically issued by an electricity provider.
Accounting Equation
The foundational equation in accounting that represents the relationship between assets, liabilities, and owners' equity, expressed as Assets = Liabilities + Owners' Equity.
- Understand the ramifications of different financial transactions on the accounting equation.
Verified Answer
DD
Darcy DelaneyMay 18, 2024
Final Answer :
Increase liabilities (Accounts Payable) and decrease owner's equity (Utilities Expense)
Learning Objectives
- Understand the ramifications of different financial transactions on the accounting equation.
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