Reference no: EM132999031

Problem 1: Michael Anderson is starting a computer programming business and has deposited an initial investment of $15,000 into the business cash account. Identify how the accounting equation will be affected.

Select one:

a. increase in assets (Cash) and increase in owner's equity (Michael Anderson, Capital)

b. increase in assets (Accounts Receivable) and decrease in liabilities (Accounts Payable)

c. increase in assets (Cash) and increase in assets (Accounts Receivable)

d. increase in assets (Cash) and increase in liabilities (Accounts Payable)

Problem 2: Paying an account payable increases liabilities and decreases assets.

Select one:

True

False