B. What the impact on XYZ's accounting equation in Maywhen it recorded the transaction as a debit to consultant expense for $10,000 and a credit to accounts payable for \$10,000

Respuesta :

Answer:

The above entry would decrease stockholders' equity by $10,000 and increase the liabilities by $10,000.

Explanation:

Consultation expense is an expense and when the expense gets debited, it refers to expense being incurred which in turn decreases stockholders' equity. Accounts payable is a liability and crediting accounts payable increases the liability.