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D Question 37 Echo Company has assets of $622,000, liabilities of $261,000, and equity of $361,000. It buys office equipment on credit for $86,000. What would be the effects of this transaction on the accounting equation? O Assets decrease by $86,000 and expenses decrease by $86,000. O Assets increase by $86,000 and expenses increase by $86,000. O Liabilities increase by $86,000 and expenses decrease by $86,000. O Assets increase by $86,000 and expenses decrease by $86,000. Assets increase by $86,000 and liabilities increase by $86,000.

D Question 37 Echo Company has assets of $622,000, liabilities of $261,000, and equity of $361,000. It buys office equipment on credit for $86,000. What would be the effects of this transaction on the accounting equation? O Assets decrease by $86,000 and expenses decrease by $86,000. O Assets increase by $86,000 and expenses increase by $86,000. O Liabilities increase by $86,000 and expenses decrease by $86,000. O Assets increase by $86,000 and expenses decrease by $86,000. Assets increase by $86,000 and liabilities increase by $86,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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log D Question 37 Echo Company has assets of $622,000, liabilities of $261,000, and equity of $361,000. It buys office equipment on credit for $86,000. What would be the effects of this transaction on the accounting equation? O Assets decrease by $86,000 and expenses decrease by $86,000. O Assets increase by $86,000 and expenses increase by $86,000. O Liabilities increase by $86,000 and expenses decrease by $86,000. O Assets increase by $86,000 and expenses decrease by $86,000. O Assets increase by $86,000 and liabilities increase by $86,000.
Transcribed Image Text:log D Question 37 Echo Company has assets of $622,000, liabilities of $261,000, and equity of $361,000. It buys office equipment on credit for $86,000. What would be the effects of this transaction on the accounting equation? O Assets decrease by $86,000 and expenses decrease by $86,000. O Assets increase by $86,000 and expenses increase by $86,000. O Liabilities increase by $86,000 and expenses decrease by $86,000. O Assets increase by $86,000 and expenses decrease by $86,000. O Assets increase by $86,000 and liabilities increase by $86,000.
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