Match Each Transaction with Its Effect on the Accounting Equation

question 76

Multiple Choice

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Purchased equipment for cash

• A)Increase assets, increase liabilities
• B)Increase liabilities, decrease owner's equity
• C)Increase assets, increase owner's equity
• D)No effect
• E)Decrease assets, decrease liabilities
• F)Decrease assets, decrease owner's equity

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Definitions:

Common-value Auction

An auction type where the item for sale is valued equally by all bidders, but the true value is unknown until after the auction ends.

Valuation

The process of determining the present value of an asset, company, or investment.

Too Optimistic

Characterizes a perspective or expectation that is overly positive or hopeful, often without sufficient grounding in reality.

Exact Value

The precise numerical quantity or measurement without any approximation or error.