◈ Oracle PrepSign Up Free
O-LevelAccountingThe fundamentals of accounting7707/12 · May/June 2012 · Q21 Mark

Jane made a payment to a supplier for goods bought on credit. Jane does not have a bank overdraft. What is the effect on the accounting equation?

Adecrease capital and decrease assets
Bdecrease liabilities and decrease assets
Cincrease assets and decrease liabilities
Dincrease liabilities and decrease capital

✓ Correct answer

B: decrease liabilities and decrease assets

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill The fundamentals of accounting and see which topics are most likely to come up next.

Sign up free →

About this question

Topic
The fundamentals of accounting, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, May/June 2012 Paper 1 Variant 2, question 2.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Accounting questions

The fundamentals of accountingMay/June 20101m

Which group contains only trading businesses?

The fundamentals of accountingMay/June 20101m

The capital of a business is higher at the end of year 2 than it was at the end of year 1. No additional capital has …

The fundamentals of accountingMay/June 20101m

A sports club had the following assets and liabilities. $ trade payables (creditors) for refreshments 750 bank 1870 …

Accounting proceduresMay/June 20121m

At the end of his financial year Tom owes $150 rent. How will the adjustment for this amount affect Tom's financial s…

Sources and recording of dataMay/June 20121m

Amina and Sabena are in partnership. How is interest on drawings recorded in the ledger?

Accounting proceduresMay/June 20121m

Which would appear in a receipts and payments account?

← Browse all past-paper questions

© 2026 Oracle Prep