Question

When the business uses its business cheque to pay for the owner’s electricity expense, which of the following statements would be correct?

Select one:

a. An increase in Owners’ equity.

b. A decrease in Bank because of the electricity expense incurred.

c. A decrease in Owners’ equity.

d. An increase in the business electricity expense account.

Answer 1

b. A decrease in Bank because of the electricity expense incurred.