How Does the Purchase of Equipment by Signing a Note

question 19

Multiple Choice

How does the purchase of equipment by signing a note affect the accounting equation?

• A)assets increase; assets decrease
• B)assets increase; liabilities decrease
• C)assets increase; liabilities increase
• D)assets increase; stockholders' equity increases

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Definitions:

Expected Utility

A concept in economics and game theory that predicts the utility an individual can expect when faced with uncertain outcomes.

Peach

A type of fruit known for its fuzzy skin, sweet flesh, and a pit in the center.

Lemon

In the context of markets, a product that is found to be defective only after it has been bought, often used in reference to used cars.

Accord

An agreement, especially one between nations or groups, which outlines the terms and conditions of a mutual understanding or settlement.