Practice mode Accounting

What effect does paying expenses have on assets?

Correct answer A. Reduce

Explanation

Paying an expense uses cash, an asset, and reduces capital by the same amount, so total assets go down.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.