question 7 (5 points)\na business paid $7,000 to a creditor in payment of an amount owed. the effect of the…

question 7 (5 points)\na business paid $7,000 to a creditor in payment of an amount owed. the effect of the transaction on the accounting equation was to\nincrease an asset, decrease another asset\ndecrease an asset, decrease a liability\nincrease an asset, increase a liability\nincrease an asset, increase stockholders equity\nquestion 8 (5 points)\nwhich of the following is not a role of accounting in business?\nto provide reports to users about the economic activities and conditions of a business\nto personally guarantee loans of the business\nto provide information to external users to determine the economic performance and condition of the business\nto assess the various informational needs of users and design its accounting system to meet those needs

question 7 (5 points)\na business paid $7,000 to a creditor in payment of an amount owed. the effect of the transaction on the accounting equation was to\nincrease an asset, decrease another asset\ndecrease an asset, decrease a liability\nincrease an asset, increase a liability\nincrease an asset, increase stockholders equity\nquestion 8 (5 points)\nwhich of the following is not a role of accounting in business?\nto provide reports to users about the economic activities and conditions of a business\nto personally guarantee loans of the business\nto provide information to external users to determine the economic performance and condition of the business\nto assess the various informational needs of users and design its accounting system to meet those needs

Answer

Brief Explanations:

For Question 7: When a business pays a creditor, it uses cash (an asset), decreasing the asset. At the same time, the amount owed (a liability) also decreases. For Question 8: Accounting provides financial - related information and reporting, not personal loan guarantees.

Answer:

Question 7: B. decrease an asset, decrease a liability Question 8: B. to personally guarantee loans of the business