A-LevelAccountingThe accounting cycle9706/12 · May/June 2023 · Q21 Mark

An asset is purchased on credit by a business. What is the effect of this transaction on the accounting equation?

Aincrease decrease increase

Bincrease decrease no change

Cincrease increase decrease

Dincrease increase no change

✓ Correct answer

D: increase increase no change

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Topic: The accounting cycle, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2023 Paper 1 Variant 2, question 2.

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