Apatha Company Has Assets of $600,000,liabilities of $250,000,and Equity of $350,000.It

question 189

Multiple Choice

Apatha Company has assets of $600,000,liabilities of $250,000,and equity of $350,000.It buys office equipment on credit for $75,000.The effects of this transaction include:

• A)Assets increase by $75,000 and expenses increase by $75,000.
• B)Assets increase by $75,000 and expenses decrease by $75,000.
• C)Liabilities increase by $75,000 and expenses decrease by $75,000.
• D)Assets decrease by $75,000 and expenses decrease by $75,000.
• E)Assets increase by $75,000 and liabilities increase by $75,000.

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