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The two accounts that change because of transaction (G) on 5/76 are _____ A. Auto Expense and Cash

B. Equipment and Cash C. Auto Expense and Auto Repair D. Equipment and Owner's Equity​

1 Answer

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Final answer:

Without specifics of the transaction, a typical accounting transaction involving an auto expense is likely to affect the Auto Expense and Cash accounts, as expenses typically result in a decrease in Cash or an increase in payables.

Step-by-step explanation:

The question you're asking is related to the accounting treatment of a particular transaction in a business context. Without the specifics of transaction (G) on 5/76, it's difficult to give an exact answer. Generally, in accounting, a transaction needs to affect at least two accounts to maintain the balance of the accounting equation, which is Assets = Liabilities + Owner's Equity. If we're discussing accounting transactions and potential effects on accounts:

  • Auto Expense and Cash could change if payment was made for car-related expenses.
  • Equipment and Cash could change if equipment was purchased for cash.
  • Auto Expense and Auto Repair doesn't seem like a typical pair since both sound like expense accounts, and usually an expense would be paired with a reduction in cash or an increase in payable.
  • Equipment and Owner's Equity could change if equipment was purchased, but instead of paying with cash, the owner invested additional equity into the company.

Typically, for an expense such as auto repairs, the two accounts likely to be affected would be an expense account and either cash or a payable account, assuming the repair costs are paid or owed. Therefore, the most likely correct answer, based on common accounting transactions, would be A. Auto Expense and Cash, whereas the use of Equipment would imply a purchase of a fixed asset, and Owner's Equity and Auto Repair do not pair naturally with typical transactional effects.

User Patrik Svensson
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