Homework Help is Here – Start Your Trial Now!
Business
Accounting
20. A transaction caused a P500,000 decrease in both total assets and total liabilities. The transaction could have been: * A. Purchase of delivery truck for P500,000 cash B. An asset with a cost of P500,000 was destroyed by fire. C. Repayment of P500,000 bank loan D. Collection with a P500,000 accounts receivable

20. A transaction caused a P500,000 decrease in both total assets and total liabilities. The transaction could have been: * A. Purchase of delivery truck for P500,000 cash B. An asset with a cost of P500,000 was destroyed by fire. C. Repayment of P500,000 bank loan D. Collection with a P500,000 accounts receivable

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Answers only

20. A transaction caused a P500,000 decrease in both total assets and total liabilities. The transaction could have been: * A. Purchase of delivery truck for P500,000 cash B. An asset with a cost of P500,000 was destroyed by fire. C. Repayment of P500,000 bank loan D. Collection with a P500,000 accounts receivable 21. A P100,000 cost of the machine was purchased on account, gave a P20,000 down payment and a note was issued for the balance. The credit will include * issued for the balance. The credit will include A. Cash, P20,000 and Accounts payable, P80,000 B. Cash, P20,000 and Notes payable, P80,000 C. Cash, P20,000 and Purchases , P80,000 D. Cash, P20,000 and Machine, P80,000
Transcribed Image Text:20. A transaction caused a P500,000 decrease in both total assets and total liabilities. The transaction could have been: * A. Purchase of delivery truck for P500,000 cash B. An asset with a cost of P500,000 was destroyed by fire. C. Repayment of P500,000 bank loan D. Collection with a P500,000 accounts receivable 21. A P100,000 cost of the machine was purchased on account, gave a P20,000 down payment and a note was issued for the balance. The credit will include * issued for the balance. The credit will include A. Cash, P20,000 and Accounts payable, P80,000 B. Cash, P20,000 and Notes payable, P80,000 C. Cash, P20,000 and Purchases , P80,000 D. Cash, P20,000 and Machine, P80,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS