Equipment Is Sold for Cash in an Amount Equal to the Cost

question 138

Multiple Choice

Equipment is sold for cash in an amount equal to the cost of the equipment recorded on the books.How does this sale affect the accounting equation?

• A) One asset increases; one asset decreases.
• B) Assets increase; liabilities increase.
• C) Assets increase; liabilities decrease.
• D) Assets increase; owner's equity increases.

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