ExamVeda
Login
Home

Payment of expenses will the assets

This question belongs to Commerce Accounting
Accounting
?

Payment of expenses will ______ the assets

Answer & Solution
Correct Answer: Option B
Payment of expenses will reduce the assets. When an expense is recorded at the same time it is paid for with cash, the cash (asset) account declines, while the amount of the expense reduces the retained earnings account.
Examveda
Question posted by Examveda
Community

Join the Discussion

2 Comments
Examveda
Examveda 9 years ago
Payment of expenses will be made through either bank or cash. Bank & Cash is assets. And balance of cash and bank will be reduced.
Rohan Panda
Rohan Panda 9 years ago
can anyone explain the logic behind it
Keep Learning

Related Questions on Accounting

Accounting provides information on
A. Cost and income for managers B. Company's tax liability for a particular year C. Financial conditions of an institutions D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets B. Fixed assets C. Intangible assets D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets B. Fixed assets C. Intangible assets D. Investments
Patents, Copyrights and Trademarks are
A. Current assets B. Fixed assets C. Intangible assets D. Investments
More Related Questions on Accounting