When a Company Buys Equipment for $150,000 and Pays for One

question 29

Multiple Choice

When a company buys equipment for $150,000 and pays for one third in cash and the other two thirds is financed by a note payable,which of the following are the effects on the accounting equation?

• A)Total assets decrease $50,000.
• B)Total liabilities increase $150,000.
• C)Total liabilities decrease $50,000.
• D)Total assets increase $100,000.

---

Definitions:

Epinephrine

A hormone and neurotransmitter also known as adrenaline, involved in regulating visceral functions, such as heart rate and blood pressure.

Muscarinic

Pertains to the type of acetylcholine receptors found in various locations in the body, playing significant roles in the function of the parasympathetic nervous system.

Postganglionic Neurons

Neurons that carry signals from the autonomic nervous system's ganglia to the target organ or tissue.

Nicotinic Receptors

A type of acetylcholine receptor found in the nervous system that is activated by nicotine.