What Is the Result of Recording the Acquisition of Equipment

question 25

Multiple Choice

What is the result of recording the acquisition of equipment?

• A) An increase in both cash and fixed assets.
• B) An increase in fixed assets and a decrease in cash.
• C) An increase in both cash and liabilities.
• D) An increase in cash and a decrease in fixed assets.

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Definitions:

Balance Sheet

A financial statement that summarizes a company’s assets, liabilities, and shareholders' equity at a specific point in time, offering a snapshot of its financial health.

Worksheet

A worksheet in accounting is a document used to compile information from ledger accounts for the purpose of preparing financial statements.

Control Account

An account used in accounting to summarize the total balances of multiple individual accounts, facilitating internal checks and balances.