The Following Entry Was Recorded in the Books of Brighty

question 256

Multiple Choice

The following entry was recorded in the books of Brighty Company.Jan. 12 Inventory
8,000
Accounts Payable-HST, Inc.8,000
Purchased inventory on account.What is the impact of this entry on the accounting equation?

• A)an increase in Assets and an increase in Equity
• B)an increase in Assets and an increase in Liabilities
• C)a decrease in Assets and a decrease in Liabilities.
• D)a decrease in Assets and a decrease in Liabilities

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Definitions:

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