A transaction caused a $15,000 decrease in both assets and total liabilities. This transaction could have been _____?

Answer: Repayment of a $15,000 bank loan.
Explanation
  • Repaying a loan decreases assets (cash) and liabilities (loan payable) by the same amount.
  • Other options involve either increasing liabilities or affecting only assets, not both.
  • This question appeared in Past Papers (2 times)
    Senior Auditor Past Papers and Syllabus (2 times)
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    ACCOUNTING (1 times)

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