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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
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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.
O Assets increase by $86,000 and liabilities increase by $86,000.
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