Accounting Equation Impact of Accounts Payable Payment - Venus, Inc.

Question 7 (1 point) Venus, Inc. paid $5,000 on accounts payable. How does this transaction affect the accounting equation of Venus?

• assets decrease by $5,000 and equity increases by $5,000
• assets increase by $5,000 and liabilities increase by $5,000
• assets increase by $5,000 and equity decreases by $5,000
• assets decrease by $5,000 and liabilities decrease by $5,000

Question 8 (1 point) The taxable income of a sole proprietorship is

• combined with the personal income of the proprietor handled similarly to that of a corporation
• not combined with the proprietor's personal income handled similarly to that of a corporation
• not taxable