Accounting Equation Page-3

21) The accounting equation represents
(A) Resources are allocated at cost price
(B) Owner’s give money for business
(C) Resources in the business are equal to the source of business
(D) Resources in the business are not equal to the source of business

22) Purchase goods on credit and for cash will effect
(A) Cash and Goods
(B) Cash, goods and creditors
(C) Cash and creditors
(D) Cash, creditors and owner’s Equity


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