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If a company purchases equipment costing $4,700 on credit, the effect on the accounting equation would be: a. Assets increase $4,700 and liabilities decrease $4,700. b. Equity decrease $4,700 and liabilities increase $4,700. c. One asset increase $4,700 and another asset decrease $4,700. d. Assets increase $4,700 and liabilities increase $4,700. e. Equity increase $4,700 and is liabilities decrease $4,700.

If a company purchases equipment costing $4,700 on credit, the effect on the accounting equation would be: a. Assets increase $4,700 and liabilities decrease $4,700. b. Equity decrease $4,700 and liabilities increase $4,700. c. One asset increase $4,700 and another asset decrease $4,700. d. Assets increase $4,700 and liabilities increase $4,700. e. Equity increase $4,700 and is liabilities decrease $4,700.

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter1: The Role Of Accounting In Business
Section: Chapter Questions
Problem 1.4.2MBA: Return on assets The following data (in millions) were adapted from recent financial statements of...
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If a company purchases equipment costing $4,700 on credit, the effect on the accounting equation would be: a. Assets increase $4,700 and liabilities decrease $4,700. b. Equity decrease $4,700 and liabilities increase $4,700. c. One asset increase $4,700 and another asset decrease $4,700. d. Assets increase $4,700 and liabilities increase $4,700. e. Equity increase $4,700 and is liabilities decrease $4,700.
Transcribed Image Text:If a company purchases equipment costing $4,700 on credit, the effect on the accounting equation would be: a. Assets increase $4,700 and liabilities decrease $4,700. b. Equity decrease $4,700 and liabilities increase $4,700. c. One asset increase $4,700 and another asset decrease $4,700. d. Assets increase $4,700 and liabilities increase $4,700. e. Equity increase $4,700 and is liabilities decrease $4,700.
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