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

Explanation of Assets:Assets are resources owned or controlled bya company that are expected to…

Answered: If an asset is purchased on credit,…

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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Similar questions

What is the impact on the accounting equation when a sale occurs? A. both sides increase B. both sides decrease C. only the Asset side changes D. neither side changes
Exchanges of assets for assets have what effect on equity? A. increase equity B. may have no impact on equity C. decrease equity D. There is no relationship between assets and equity.
What are the effects of the following transactions on the accounting equation? Indicate an increase (+) or decrease () under the affected asset, liability, and owners equity headings.
How are gain contigencies reported in the financial statements? a. a contingent account receivable b. an accrued revenue c. a deferred revenue d. not at all
Which one of the following accounts is unlikely to ever be seperately disclosed in the income statement? O A. Cost of sales O B. Bad debts O C. Interest on current bank account O D. Depreciation
Which of the following accounts would never be reportedin the income statement as an expense?a. Depreciation expense.b. Income taxes expense.c. Interest expense.d. Dividends expense.
May you please help me determine the effect on the accounting equation?
Accounting type Question: Income received in advance is a A. An asset B. An income C. A liability D. None of the above
Which of the following would trigger a subtraction in the indirect operating section? A. decrease in accounts receivable B. gain on sale of investments C. depreciation expense
Which of the following is an incorrect depiction of the accounting equation? O Assets - Equity = Liabilities O Assets - Liabilities = Equity O Assets + Equity = Liabilities O Assets = Liabilities + Equity
Which of the following assets would not be included as a quick asset? a.Merchandise inventory b.Cash c.Temporary investments d.Accounts receivable
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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