If a Company Purchases Equipment Costing $4,500 on Credit,the Effect

question 168

Multiple Choice

If a company purchases equipment costing $4,500 on credit,the effect on the accounting equation would be:

• A)Assets increase $4,500 and liabilities decrease $4,500.
• B)Equity decreases $4,500 and liabilities increase $4,500.
• C)Liabilities decrease $4,500 and assets increase $4,500.
• D)Assets increase $4,500 and liabilities increase $4,500.
• E)Equity increases $4,500 and liabilities decrease $4,500.

Identify the main areas and opportunities within the field of accounting.

Recognize the ethical considerations and challenges in accounting.

Understand the differences between various business entities and their implications for accounting.

Grasp the objectives and importance of financial accounting for external analysis and decision-making.

---

Definitions:

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out information.

GABA

Gamma-aminobutyric acid, an inhibitory neurotransmitter in the brain that helps regulate neuronal activity and reduces anxiety.

Acetylcholinesterase

An enzyme that breaks down acetylcholine, a neurotransmitter involved in muscle action and memory.

Seconal

A brand name for secobarbital, a barbiturate used as a sedative and hypnotic medication.