If an asset is purchased on credit. what is the effect on the accounting equation?a) Assets increase; liabilities increaseb) Assets decrease: equity decreasesc) Liabilities decrease: equity increasesd) No effect on the accounting equation

Explanation of Asset: An asset is a resource owned by a business that has economic value and is…

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