Friday, October 9, 2020

When a company pays cash for equipment, what is the effect on the accounting equation for that company?

When a company pays cash for equipment, what is the effect on the accounting equation for that company?


A) Increase assets and increase liabilities.

B) Decrease assets and decrease liabilities.

C) No net change.

D) Increase assets and increase stockholders' equity.


Answer: C

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