Accounting WAEC

Outstanding rent of N300 is paid by the proprietor. The effect on the balance sheet is that?

A. both the liability and asset are increased
B. both the liability and asset are decreased
C. liability is increased while the asset is decreased
D. liability is decreased while the asset is increased
E. both liability and asset remain unchanged

Correct Answer:

Option B – both the liability and asset are decreased

Sunday

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