Courtney Company Purchased Equipment for $1,800 Cash

question 200

Multiple Choice

Courtney Company purchased equipment for $1,800 cash.As a result of this event,

• A)equity decreased by $1,800.
• B)assets increased by $1,800.
• C)total assets remained unchanged.
• D)Both assets and equity decreased by $1,800.

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Definitions:

Compounded Semi-Annually

Compounded semi-annually refers to the process where interest on an investment or loan is calculated and added to the principal balance twice a year.

35 Years

A period of thirty-five years, often referred to in the context of long-term investments or life events planning.

Invested

To distribute financial resources aiming for potential benefits down the line, including income or profits.

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit over time.