a. The company pays cash toward an account payable. b. The company purchases equipment on credit. c. The owner invests cash in the business. d. The company pays workers for wages earned. e. The company purchases supplies for cash. f. The company provides services for cash.

a. The company pays cash toward an account payable. ⇒ Decreases an asset and decreases liability.

Cash is an assets and is reduced by this transaction. Accounts payable is a liability that is also reduced by this.

b. The company purchases equipment on credit.  ⇒ Increases an asset and increases a liability.

Equipment is an asset so buying it increases assets. It was bought on credit however so liabilities increased.

c. The owner invests cash in the business.  ⇒ Increase in assets and increase in equity.

Money brought into a business by the owner is equity and that increased here so this is an increase in equity. Cash is an asset so when it increases, so do assets.

d. The company pays workers for wages earned.  ⇒ Decrease in asset and decrease in equity.

Cash was used to pay the workers so assets reduce. Wages earned are an expense that are reduced from income which is equity so equity reduces as well.

e. The company purchases supplies for cash.  ⇒ Increase in asset and decrease in asset.

Purchases bring in inventory which are assets so assets increase. Cash was used to buy the asset and so it will reduce so assets will reduce. There is no net effect as these cancel each other out.

f. The company provides services for cash. ⇒ Increase in assets and increase in equity.

Services bring in income which is an equity transaction so equity increases. Cash increases as well as these services bring more cash so assets increase.

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101