O-LevelAccountingThe fundamentals of accounting7707/12 · Oct/Nov 2018 · Q21 Mark

Ava had $4000 in the bank. She paid a supplier $575 by cheque in full settlement of $600 owing. Which changes would take place within the accounting equation?

Aassets -600, owner's equity (capital) -25, liabilities -$625

Bassets -600, owner's equity (capital) +25, liabilities -$625

Cassets -575, owner's equity (capital) +25, liabilities -$600

Dassets +575, owner's equity (capital) -25, liabilities +$600

✓ Correct answer

C: assets -575, owner's equity (capital) +25, liabilities -$600

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Topic: The fundamentals of accounting, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2018 Paper 1 Variant 2, question 2.

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Ava had $4000 in the bank. She paid a supplier $575 by cheque in full settlement of $600 owing. Which changes would take place within the accounting equation?

✓ Correct answer

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