If a Company Purchased Equipment for Cash, the Accounting Equation

question 14

Multiple Choice

If a company purchased equipment for cash, the accounting equation would show a(n)

• A) Increase in assets and decrease in assets
• B) Decrease in liabilities and increase in assets
• C) Increase in liabilities and increase in assets
• D) Decrease in liabilities and decrease in assets

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Definitions:

Quantity Supplied

The total number of units of a good or service that sellers are willing and able to sell at a particular price over a specified period.

Point A to B

A phrase commonly used to describe the process or path taken from one position or situation to another, often implying a change in state or location.

Price of Oranges

The amount of money required to purchase a specific quantity of oranges in a given market.

Technological Machinery

Refers to machines and equipment developed through technological advances to perform tasks more efficiently than traditional methods.