Question

Drag the tiles to the correct boxes to complete the pairs. match the transactions to the relevant effects on the balance sheet. credit purchases for supplies to manufacture goods for sale cash sales of goods office furniture purchase for cash goods sold on credit inventory; accounts payable arrowright inventory; accounts receivables arrowright cash; inventory arrowright cash; fixed assets arrowright

Answer 1

This business question involves matching various transactions to their effects on a balance sheet, such as increasing Inventory and Accounts Payable for credit purchases, or decreasing Cash and increasing Fixed Assets for purchasing office furniture for cash.

Step-by-step explanation:

The student's question is regarding the matching of transactions to the corresponding effects on a balance sheet in the context of a business's accounting records. In financial accounting, different types of transactions impact the balance sheet in various ways.

• Credit purchases for supplies to manufacture goods for sale would increase Inventory and Accounts Payable.
• Cash sales of goods would increase Cash and decrease Inventory.
• Office furniture purchase for cash would decrease Cash and increase Fixed Assets.
• Goods sold on credit would increase Inventory and Accounts Receivables.

The balance sheet is a financial statement that presents a company's financial position at a specific point in time and is divided into assets, liabilities, and equity. The aforementioned transactions affect the assets and liabilities sections of the balance sheet.