Question - Last month, Mr. Hughes, the owner, purchased supplies on account, $4,200. Today, Mr. Hughes pays the amount that is owed.
Required: What is the effect of this transaction on individual asset accounts, individual liability accounts, and the Owner's Equity account?
Check all that apply.
An asset account increases.
An asset account decreases.
A liability account increases.
A liability account decreases.
Owner's Equity increases.
Owner's Equity decreases.