How Does the Purchase of Equipment on Account Affect the Accounting

question 138

Multiple Choice

How does the purchase of equipment on account affect the accounting equation?

• A) Assets increase; liabilities decrease.
• B) Assets increase; owner's equity increases.
• C) Assets increase; liabilities increase.
• D) Liabilities increase; owner's equity decreases.

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Definitions:

Referent Power

A type of influence based on the attractiveness and charisma of the leader, leading others to identify with or emulate them.

Interpersonal Attractiveness

The degree to which a person is perceived as likeable, desirable, or worth engaging with in a social or romantic context.

Friendliness

A behavior or attitude that is hospitable, welcoming, and kind towards others.

Influencing Responses

Communications in therapy designed to guide or encourage clients toward positive behavioral or cognitive changes.