A business returns damaged goods which it had previously purchased on credit to the supplier. The effect of this transaction would be to: Decrease capital and decrease assets Decrease assets and decrease liabilities Increase capital and decrease assets Increase assets and increase liabilities

A business returns damaged goods which it had previously purchased on credit to the supplier. The effect of this transaction would be to: Decrease capital and decrease assets Decrease assets and decrease liabilities Increase capital and decrease assets Increase assets and increase liabilities

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 6Q

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Question

A business returns damaged goods which it had previously purchased on credit to the supplier. The effect of this transaction would be to:

	Decrease capital and decrease assets
	Decrease assets and decrease liabilities
	Increase capital and decrease assets
	Increase assets and increase liabilities

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