The Purchase of Office Equipment on Credit Has What Effect

question 52

Multiple Choice

The purchase of office equipment on credit has what effect on the accounting equation?

• A)Assets increase and liabilities increase.
• B)Liabilities increase and stockholders' equity decreases.
• C)Assets decrease and stockholders' equity decreases.
• D)Assets decrease and liabilities decrease.

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Definitions:

Selling Price

The amount of money for which a product or service is sold to the customer.

Forecast Revenue

An estimate of future sales and income, usually based on past trends, market analysis, and other predictive measures.

Unit and Price Detail

Specific information concerning the quantity of goods or services along with their corresponding prices.

Subjective Benefits

Advantages or value perceived by individuals in a subjective manner, sometimes difficult to quantify, like job satisfaction or brand loyalty.