If an asset is purchased on credit, what is the effect on the accounting equation? (a) Assets decrease; equity decreases (b) Assets increase; liabilities increase (c) Liabilities decrease; equity increases (d) No effect on the accounting equation ?

If an asset is purchased on credit, what is the effect on the accounting equation? (a) Assets decrease; equity decreases (b) Assets increase; liabilities increase (c) Liabilities decrease; equity increases (d) No effect on the accounting equation ?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 26MC: What is the impact on the accounting equation when an accounts receivable is collected? A. both...

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