Reference no: EM132700790

Effects of a transaction on assets, liabilities, and equity:
Mr. Hayes, the owner, pays its supplier $3,400 for supplies purchased three weeks earlier.

Problem 1: What is the effect of this transaction on individual asset accounts, individual liability accounts, and the Owner's Equity account?

Option 1: An asset account increases.

Option 2: An asset account decreases.

Option 3: A liability account increases.

Option 4: A liability account decreases.

Option 5: Owner's Equity increases.

Option 6: Owner's Equity decreases.